TLDR:
- Stock futures fell Monday with Dow down 0.9%, S&P 500 down 1%, and Nasdaq down 1.1%
- Trump administration exploring whether it can fire Fed Chair Jerome Powell
- Markets concerned about escalating trade tensions with China
- Bitcoin surged to highest level since Trump’s “Liberation Day” tariff announcements
- Gold reached record high at $3,406 per Troy ounce amid economic uncertainty
U.S. stock markets were set to open lower on Monday as investors reacted to growing trade tensions and uncertainty surrounding Federal Reserve leadership. Futures tracking major indexes showed declines across the board in premarket trading, with the Dow Jones Industrial Average down 0.9%, S&P 500 futures slipping 1%, and Nasdaq 100 futures dropping 1.1%.
The market decline comes amid reports that the Trump administration is considering whether it has the authority to remove Federal Reserve Chair Jerome Powell. White House economic advisor Kevin Hassett confirmed Friday that officials were looking into this possibility, following President Trump’s public criticism of Powell on social media.
This potential shake-up at the Federal Reserve has added another layer of worry for investors already concerned about the impact of Trump’s tariff policies. All three major U.S. indexes have fallen more than 5% since Trump’s April 2 tariff announcement at the White House, which he dubbed “Liberation Day.”
Trade Tensions Escalate
China’s Ministry of Commerce issued a statement Monday declaring that while it respects countries trying to resolve differences with the U.S., it “firmly opposes any party reaching a deal at the expense of China’s interests.” The ministry warned it would impose countermeasures against any countries that threaten its economic position.
These developments have led to ripple effects across global markets. The WSJ Dollar Index, which tracks the dollar’s strength against 16 other currencies, dropped 0.9% to near its lowest level of the past year.
Oil prices also felt the pressure, with Brent crude falling 1.5% to under $67 per barrel and West Texas Intermediate dropping 1.6% to less than $64 per barrel. Traders worry that Trump’s tariffs could weaken global demand for oil.
Safe Haven Assets Shine
As uncertainty grows, investors have flocked to traditional safe-haven assets. Gold futures climbed 2.3% to reach a new record high of $3,406 per Troy ounce.
Bitcoin has also seen a surge, reaching its highest level since Trump’s tariff announcements. The cryptocurrency was up 3.45% to $87,138.66, according to market data.
The yield on the 10-year U.S. Treasury note increased by 4 basis points to 4.366%, reflecting changing investor sentiment about economic prospects and monetary policy.
Market volatility has been high in recent weeks, with different headlines and shifts in policy narratives driving big swings. The shortened trading week last week saw the S&P 500 fall about 1.5%, while both the Nasdaq Composite and Dow lost roughly 2.6%.
The current market downturn comes as corporate America begins to report first-quarter earnings. So far, a smaller percentage of companies are beating analyst expectations, and those that are exceeding estimates are doing so by smaller margins than usual.
This week, investors will turn their attention to earnings reports from two “Magnificent 7” tech companies: Tesla and Alphabet. Both stocks reflect this year’s shift away from high-flying tech investments, with Alphabet down nearly 20% in 2025 and Tesla losing approximately 40% of its value.
The week ahead features fewer major economic data releases, with reports on the housing market and consumer sentiment scheduled for later in the week.
Experts note that the market remains largely at the mercy of Trump’s tariff policies and Federal Reserve developments. The combination of trade uncertainty and potential leadership changes at the Fed has created a challenging environment for investors trying to navigate market volatility.
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