Markets decline amid trade war fears and Federal Reserve criticism

From Yahoo Finance: 2025-04-20 22:56:00

Wall Street weakened as Trump’s trade war and criticism of the Federal Reserve shake up traditional investments. The S&P 500 sank 2.4%, Dow Jones dropped 971 points, Nasdaq down 2.6%. U.S. government bonds and the dollar also sank. Trump’s tough talk on tariffs could lead to a recession, causing fear in markets.

Trump’s continued tough stance on global trade raises concerns. China warns against trade deals at its expense. Trump’s criticism of Federal Reserve Chair Jerome Powell adds to market worries. Fed resistant to quick rate cuts. Trump talks of a slowdown unless rates are lowered.

Investors rethink investment fundamentals amid market uncertainty. Wall Street sees Big Tech stocks lead lower ahead of earnings reports. Tesla and Nvidia stocks drop. Discover Financial Services and Capital One Financial climb after merger approval. S&P 500, Dow Jones, and Nasdaq all fall in another market wipeout.

Gold climbs as a safe-haven investment, unlike others. Bond market sees shorter-term Treasury yields fall as investors anticipate rate cuts. Longer-term yields rise amid doubts about the U.S.’s global standing. U.S. dollar falls against major currencies. Market volatility raises concerns for investors globally.

Read more: Wall Street and the dollar tumble as investors retreat further from the United States