Stocks dropped sharply on Monday, with the Dow Jones Industrial Average (DJIA) falling 1,039 points or 2.66%. Also, the S&P 500 Index (SPX) and the Nasdaq Composite (NDAQ) were down 2.4% and 2.7%, respectively. The decline followed President Trump’s public criticism of Federal Reserve Chair Jerome Powell, raising concerns about the Fed’s independence.
In a Truth Social post, Trump called Powell “Mr. Too Late, a major loser,” and urged immediate interest rate cuts to avoid an economic slowdown. This fueled market uncertainty, especially after Trump hinted at Powell’s removal last week, with advisor Kevin Hassett confirming the team was exploring this option.
Following these comments, the dollar hit a three-year low, while gold surged to record highs above $3,400 per ounce.