Dow drops 1,000 points as Trump renews criticism of Federal Reserve Chair Jerome Powell

The stock market took a sharp nosedive on Monday as Wall Street resumed trading after a shortened week, with President Trump once again targeting Federal Reserve Chair Jerome Powell and calling him a “major loser.” The S&P 500 dropped 2.9%, losing 152 points, while the Dow Jones Industrial Average plummeted 2.7%, shedding 1,071 points. The Nasdaq Composite fared even worse, sinking 3.2%.

Investors were grappling with ongoing tariff uncertainties and eagerly anticipating the upcoming earnings reports from U.S. tech companies this week. Global market activity remained subdued on Monday, with many markets closed for Easter Monday, including Europe, Hong Kong, and Australia.

The pressure on Powell has been mounting, with the stock market starting the week on shaky ground following a volatile week. Trump’s tariffs and the potential implications of a Fed shakeup have investors on edge. The tariffs on China are already impacting trade activity, and Powell’s warning about the potential inflationary effects of tariffs has further rattled the markets.

President Trump has been vocal about his desire for Powell to lower interest rates to stimulate economic growth, despite the risks of increased inflation. The ongoing battle between the Fed and the White House has raised concerns among investors about the independence of the central bank. While Trump has hinted at the possibility of firing Powell, legal experts suggest that it would be challenging to do so before Powell’s term ends in 2026.

The tech sector is also under scrutiny this week, with investors eagerly awaiting earnings reports from major tech players like Amazon, Google-parent Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. These companies, collectively known as the “Magnificent Seven,” have seen their market value decline by $3.8 trillion since Trump’s inauguration, reflecting the market’s volatility in response to tariff uncertainties.

As the stock market navigates these challenges, investors are bracing for further turbulence in the coming months. The ongoing trade tensions, Fed policy decisions, and corporate earnings reports will continue to drive market sentiment and shape investment strategies in the weeks ahead.