Market Turmoil: Trump's Fed Attacks and Trade Tensions Roil U.S. Stocks

U.S. stocks plunged on Monday amid President Trump's intensified criticism of Federal Reserve Chair Jerome Powell, raising concerns about the Fed's independence. Major indexes fell over 2%, heavily impacting the tech sector. Rising trade tensions with China also contributed to market fears and uncertainty among investors.

On Monday, U.S. stocks took a significant hit as President Donald Trump ramped up his attacks on Federal Reserve Chair Jerome Powell, leading to increased investor anxiety about the central bank's independence. The major indexes, including the tech-heavy Nasdaq, experienced notable declines exceeding 2%.

Trump's latest criticisms come amid a backdrop of heightened trade tensions with China, worsening the market's outlook. The S&P 500, currently 17% below its record high, stands on the brink of entering bear market territory should it drop further. Trump's remarks on Truth Social cast doubt on the Fed's decision-making.

The escalating Sino-U.S. trade war also played a role in rattling investors, as Beijing cautioned countries against aligning with U.S. policies. This week, market watchers will scrutinize earnings reports from major companies, including Tesla and Alphabet. Nvidia saw a notable drop after reports of Huawei's new AI chip shipments planned for China.

(With inputs from agencies.)