Threats to Federal Reserve's independence cause stock market drop and uncertainty
From Nasdaq: 2025-04-21 18:13:00
Stock indexes closed down on Monday, with the S&P 500, Dow Jones, and Nasdaq 100 falling to 1-1/2 week lows. The dollar hit a 3-year low as President Trump considers firing Fed Chair Powell over interest rate decisions. Gold rallied to a record high amid uncertainty, with markets bracing for possible repercussions.
US economic news turned negative as leading indicators fell more than expected in March. Bitcoin surged to a 3-1/2 week high due to a weakened dollar and concerns about Fed Chair Powell’s future. Market focus shifts to Q1 earnings results and potential changes to US trade policies this week.
Q1 earnings growth for S&P 500 stocks is expected to be +6.7%, lower than previous forecasts. Overseas markets closed mixed, with China’s Shanghai Composite rising. Recent tariff developments show ongoing trade tensions between the US and other nations. The tit-for-tat escalation affects various industries and markets.
Interest rates rose on Monday, with the 10-year T-note yield climbing due to fears over Fed Chair Powell’s potential removal. European bonds were closed for a holiday, while ECB members warned of potential inflation risks. US stock movers included tech and healthcare sectors, with notable declines in major companies.
Chip stocks saw a downturn, impacting the overall market. Health insurance stocks fell following UnitedHealth Group’s earnings outlook cut. Energy producers also struggled as WTI crude prices dropped. Salesforce and Discover Financial Services were among the gainers in the S&P 500.
AngloGold Ashanti led gold-mining stocks higher as gold prices soared. Fidelity National Information and Netflix also saw gains after positive news. Earnings reports for April 22 include companies like 3M Co, General Electric, and Tesla. Market movements continue to be influenced by global economic factors and corporate earnings.
Read more at Nasdaq: Threats to the Federal Reserve’s Independence Hammers Stocks