U.S. stock markets experienced a downturn on Monday after President Trump renewed his criticism of Federal Reserve Chair Jerome Powell, labeling him a "major loser" for not implementing interest rate cuts. Investors are concerned that Trump's actions could compromise the Fed's independence, further destabilizing global markets.
The Dow Jones Industrial Average fell by approximately 2.5%, or nearly 1,000 points, while the Nasdaq Composite shed 2.4%, and the S&P 500 decreased by 2.4%. These declines reflect investor anxiety over trade tensions with China and fears of a potential shakeup at the Federal Reserve.
Tesla shares dropped nearly 6% as investors awaited the company's quarterly earnings report. Nvidia's stock also declined by 4.5% due to U.S. restrictions on chip sales to China, raising concerns about the AI chipmaker's future earnings. Conversely, Netflix shares rose by 1.5% following positive earnings results and analysts' raised price targets.