7 Key Points Summary โ Wall Street Losses
- U.S. stocks tumbled due to Trumpโs trade war and Fed criticism.
- The S&P 500 dropped 2.6%, now 16% below its recent high.
- The Dow plunged 1,000 points; Nasdaq fell 2.9%.
- Big Tech stocks, including Tesla, led the market decline.
- The U.S. dollar weakened unusually, fueling global concerns.
- Trumpโs feud with Fed Chair Powell stoked investor fears.
- Treasury yields fluctuated as market volatility surged.
Wall Street Losses Deepen Amid Trump Trade Turmoil
Markets are crashing. Wall Street is reeling from new fears about President Trumpโs trade war tactics and his ongoing attacks on the Federal Reserve. The fallout hit fast on Monday.
Stocks Plunge Across the Board
The S&P 500 fell 2.6% and is now 16% below its all-time high. The Dow Jones Industrial Average lost over 1,000 points. Meanwhile, the Nasdaq dropped 2.9%, driven down by struggling tech stocks.
Big Tech Takes the Hit
Investors fled from Big Tech ahead of key earnings reports. Tesla fell more than 6%, reflecting deepening concerns over its valuation and Elon Muskโs role. Other tech giants also saw heavy losses.
Dollar Weakness Raises Alarms
Strangely, the U.S. dollar also lost ground. It dropped against the euro, yen, and Swiss franc. This move is rare during market panic. Analysts say the turmoil is different this time because it comes directly from Washington.
Trumpโs Trade Standoff Escalates
Trump kept up his aggressive trade rhetoric. Over the weekend, he blasted critics on Truth Social, dismissing economists who oppose tariffs. He warned that businesses not backing him were โbad at business and worse at politics.โ
China Fires Back
China warned countries not to make trade deals with the U.S. that harm Beijingโs interests. The Commerce Ministry promised reciprocal action if provoked. Talks with Japan have stalled, adding to the uncertainty.
Fed in the Crosshairs
Trump also reignited his feud with Federal Reserve Chair Jerome Powell. He criticized Powell for not slashing rates. Trump said a slowdown is coming unless โMr. Too Lateโ acts quickly.
Investors Fear Fed Shake-Up
A move to oust Powell could send deeper shockwaves. Investors want rate cutsโbut fear losing an independent Fed. Confidence in the U.S. as a safe financial haven is at risk.
Bond Market Reacts
Treasury yields moved wildly. The 10-year yield briefly topped 4.40% before dropping back. Shorter-term yields slid as investors clung to hopes for a Fed rate cut.
Some Winners Emerge
Not every stock fell. Discover Financial Services and Capital One gained after their merger cleared a major hurdle. Discover climbed 3%, and Capital One rose nearly 1%.
Global Markets Mixed
Markets abroad showed a mixed picture. Tokyoโs Nikkei dropped 1.3%, while Seoul and Shanghai posted modest gains. Currency markets also reflected the uncertainty as the dollar slumped.
Trumpโs Trade Gamble Continues
Trumpโs aggressive strategy is causing global waves. As his trade war deepens and pressure mounts on the Fed, investors brace for more market chaos. Wall Streetโs losses may just be the beginning.
