US stock markets tumbled on Monday, following President Donald Trump’s renewed criticism of Federal Reserve Chair Jerome Powell, urging the central bank to cut interest rates amid growing signs that his trade war is pushing the US economy towards a recession.
The Dow Jones Industrial Average closed down 2.5% at 38,170.41 points, the broader S&P 500 lost 2.4% to 5,158.20 points, and the tech-heavy Nasdaq dropped 2.6% to 15,870.90 points. Markets were closed on Friday for Good Friday.
Trump’s dissatisfaction with the Federal Reserve’s interest rate policy has been ongoing. His persistent attacks on Powell have intensified concerns about the central bank’s independence in setting monetary policy for the world’s largest economy.
Consequently, the dollar has fallen to a three-year low, with the euro trading at $1.1515 compared to last Thursday’s close of $1.1375.
The lack of progress in global trade talks further dampened investor sentiment.
US stock indices have shed approximately 7% since early April, when Trump announced a raft of import tariffs on goods from various countries.
On the other hand, the price of gold is continuing its ascent, driven by market turmoil due to Trump’s trade policies and the escalating trade war between the US and China.
On Monday, the precious metal’s price topped $3,400 per ounce for the first time.
