Stocks fell on Monday Morning Star US Market Index It fell 2.4% after President Donald Trump acquired Federal Reserve Chairman Jerome Powell and continued pushing to cut interest rates.
Stocks have been lower since the beginning of April as the Trump administration’s new tariff regime is plaguing investors. The S&P 500 Benchmark Index also fell by 2.4%, while the technology-rich Nasdaq fell by 2.6%.
Besides the uncertainty, President Trump is continuing to put pressure on the Fed. He publicly criticizes Powell for leaving interest rates at levels he considers too high. Last week, Trump said Powell’s firing “can’t come quickly enough.” On Monday, he added that Powell is the “major loser” to lower the “current” fee.
Marketwatcher worries that attempts to remove Powell from his post could destabilise the financial system and erode trust in the United States as a safe haven for the world.
US stocks fall completely, bonds rise
Losses spread across every corner of the Morningstar style box. Large growth stocks caused the worst losses with a loss of 3%, while large value stocks were optimal, with 1.7% less losses. All 11 sectors fell, with cyclical stocks in technology, energy and consumers all falling by around 2.7%. The consumer defense sector held its highest, lowering the day by 1.3%. Overall, the US stock market has fallen 6.9% since tariff sales began on April 3.
Meanwhile, the 10-year U.S. Treasury bond yields rose to 4.41% from 4.33% at the end of Friday. Yet yields are rising despite growing expectations that Trump’s trade policy will drive the US economy into a recession.
The author or author does not own any shares in the securities mentioned in this article.
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