Stock market today: Dow sinks 1,100 points, S&P 500, Nasdaq tank with Trump’s tariffs, Powell bashing in focus

Gold (GC=F) surged to a record high on Monday, surpassing $3,420 per ounce after President Trump hurled more criticism at Federal Reserve Chair Jerome Powell, urging him to lower interest rates.

The US dollar sank while gold futures touched new records after Trump warned in a post on social media of a “SLOWING” of the economy “unless Mr. Too Late, a major loser, lowers interest rates, NOW.”

Year to date, gold is up more than 30% while the major averages are down by double-digit percentages.

Streaming giant Netflix (NFLX) was acting like a “defensive” play on Monday as the rest of the stock market tanked.

Yahoo Finance’s Alexandra Canal has more:

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Barclays revised its euro/US dollar outlook, citing political tensions fueled by Trump’s ongoing criticism of Federal Reserve Chair Jerome Powell and the broader risks to central bank independence.

“It became clear that the execution of President Trump’s policies carried significant downside risk for the US economy and the dollar,” Themistoklis Fiotakis, Barclays global head of foreign exchange and emerging markets macro strategy, wrote in a note to clients Monday.

Fiotakis brought the firm’s 12-month EUR/USD forecast to 1.15, allowing for further weakness in the near term.

He added that the ongoing loss of credibility stemming from “Liberation Day” put the dollar in an especially fragile state. The US dollar (DX-Y.NYB) extended its decline on Monday, hitting its lowest point in three years against key global currencies.

Meanwhile, Trump ramped up his attacks on Fed Chair Powell, calling for interest rate cuts after threatening to overturn the Federal Reserve chairman last week.

If the central bank eases its monetary policy by lowering rates due to pressure from the Trump administration, the impact on the US dollar could be more severe. And if Trump were to change leadership by removing Powell, the damage to the dollar would be more significant.

Barclays warned that any perceived erosion of the Fed’s autonomy could erode confidence in the dollar and accelerate capital outflows.

Yahoo Finance’s Laura Bratton reports on another “Magnificent Seven” sliding during Monday’s session:

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Loss on the major averages accelerated on Monday morning as the Dow Jones Industrial Average (^DJI) dropped over 900 points and the tech-heavy Nasdaq (^IXIC) fell more than 2.6% to hit a session low.

The S&P 500 (^GSPC) also sank more than 2.3% as the US dollar slid. Stocks opened lower but sank further after President Trump hurled another public insult at Fed Chair Jerome Powell, warning of a “SLOWING” of the economy “unless Mr. Too Late, a major loser, lowers interest rates, NOW.”

Hertz (HTZ) shares tumbled 11% Monday morning, giving back gains from last week’s rally sparked by Bill Ackman’s hedge fund taking a significant position in the rental car giant.

Ackman, the CEO of Pershing Square Capital Management, shared on social media that his company had built a 19.8% stake in Hertz after accumulating shares since late last year.

Hertz stock surged on Wednesday after Pershing Square disclosed its 12.7 million share stake, fueling investor speculation about the high-profile fund’s view of the struggling company.

The rental company reported a loss of nearly $2.9 billion in 2024. Hertz attributed the disappointing results to vehicle depreciation and the drop in the price of electric vehicles, which it began purchasing back in 2021 to stay competitive with the industry.

Ackman sees the company benefiting from auto tariffs, which will likely raise used car prices in the near term. Other automakers, like Audi and Volkswagen (VWAGY), have pledged to halt imports to avoid paying the 25% levies.

According to Ackman, that would be a boon for Hertz, which owns a fleet of more than 500,000 cars valued at roughly $12 billion. A 10% increase in used car prices could translate to a $1.2 billion boost in the company’s auto assets alone.

Tesla (TSLA), Nvidia (NVDA), and Meta (META) were leading the “Magnificent Seven” stocks lower on Monday amid an overall market sell-off.

EV maker Tesla dropped 4% ahead of its quarterly results due on Tuesday.

Chip giant Nvidia dropped after a report from Reuters said Chinese tech giant Huawei is set to begin shipping advanced AI chips as soon as next month. The move comes after President Trump’s new export rules effectively banned Nvidia from selling its H20 chips in China.

Shares of social media platform Meta were also lower on Monday, occupying the #5 trending ticker spot on Yahoo Finance. The company will report earnings on April 30. Meta is down 17% year to date.

Yahoo Finance’s Brian Sozzi reports:

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President Trump once again called for the Federal Reserve to lower interest rates in a post on Truth Social on Monday.

He warned of a “SLOWING” of the economy “unless Mr. Too Late, a major loser, lowers interest rates, NOW.”

Last week, reports swirled that Trump has been pursuing possibly firing Fed Chair Jerome Powell after Trump told reporters, “If I want him out, he’ll be out of there real fast, believe me.”

But investors have largely argued this wouldn’t be a welcome a sign for markets, with even the possibility of Trump ousting Powell could be another headwind for stocks.

“If the independence of the Fed … comes into question and is actually realized, I think that would further put downward pressure on the confidence that foreign investors have in investing in US dollar assets,” Michael Goosay, Principal Asset Management’s chief investment officer of global fixed income, told Yahoo Finance.

If you’re planning a trip abroad this summer, the weak US dollar could put a dent in your travel budget.

On Monday, the US dollar (DX-Y.NYB) extended its decline, hitting its lowest point in three years against key global currencies. It’s one of the worst starts to a year for the greenback in decades.

That means American travelers will have less spending power while on grand tours of European capitals this summer.

But a weak US dollar isn’t all bad news. While travelers may feel the pinch, there’s a silver lining for US businesses. Profits made overseas in euros, pounds, and yen are worth more when converted back into dollars, offering a financial boost for companies with international profits.

As my colleague Ines Ferré noted below, the “sell America” theme is alive and well in markets amid heightened trade tensions and President Trump’s heavy criticism of Fed Chair Powell.

Data from LSEG Lipper showed US equity funds and bond funds faced selling pressure in the week ended April 16 as tariffs revived recession fears.

Reuters reports:

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US stocks dropped on Monday as investors assessed the impact of President Trump’s tariff policy and criticism of the Federal Reserve on US assets.

The S&P 500 (^GSPC) was down roughly 1%, while the tech-heavy Nasdaq (^IXIC) fell about 1.4%. The Dow Jones Industrial Average (^DJI) dropped over 200 points.

Tech stocks led the market lower on Monday, with all of the “Magnificent Seven” stocks in the red.

The US dollar (DX=F) index neared its lowest level since 2022, and the benchmark 10-year Treasury yield (^TNX) rose to near 4.4% as the “sell America” theme took center stage following President Trump’s heightened criticism of Fed Chair Jerome Powell for not lowering rates soon enough.

Yahoo Finance’s Laura Bratton reports:

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Discover (DFS) and Capital One (COF) stocks continued to gain on Monday morning after two bank regulators approved Capital One’s $35 billion purchase of Discover.

Discover shares jumped more than 7% ahead of the opening bell while Capital One (COF) climbed 4%.

As Yahoo Finance’s David Hollerith notes, Capital One’s purchase of Discover would make it the biggest credit card issuer in the US by loan volume, even bigger than JPMorgan Chase (JPM).

The combined bank is expected to have consolidated assets of approximately $637.8 billion, making it the sixth-largest nationally chartered US bank, according to regulators.

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US stock futures took a leg lower Monday morning as investors await updates on tariffs and threats to Federal Reserve independence reemerged.

S&P 500 futures (ES=F) tumbled 1.4%, while those on the tech-heavy Nasdaq (NQ=F) sank 1.58%. Dow Jones Industrial Average futures (YM=F) dropped 1.2%, over 400 points. Losses have accelerated over the past hour.

The “Magnificent Seven” tech stocks were all down at least 1% in premarket trading.Nvidia (NVDA) stock fell 3% while Tesla (TSLA), which reports earnings on Tuesday, dropped 4%.

Netflix (NFLX) shares climbed 3% in premarket trading on Monday, boosted by a positive annual revenue forecast that eased investor concerns about its ability to weather an economic slowdown amid tariff-related challenges.

Reuters reports:

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Bitcoin (BTC-USD) soared to its highest point since Donald Trump’s “Liberation Day” tariff remarks, as the dollar weakened amid growing concerns over the president’s push to remove Federal Reserve Chairman Jerome Powell.

Bloomberg News reports:

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Gold (GC=F) surged to a record high, driven by a dip in the US dollar, President Trump’s criticism of the Federal Reserve, and ongoing trade war fears, fueling demand for safe-haven assets.

Bloomberg News reports:

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