Wall Street tumbles for 4th session as trade tensions deepen, Fed uncertainty looms

The U.S. dollar index fell over 1 percent to 98.13, prompting a surge in safe-haven assets. Gold futures soared 2.4 percent to trade above $3,400 per ounce, hitting fresh all-time highs.

U.S. stocks slid for a fourth consecutive session on Monday, weighed down by escalating trade tensions and renewed worries over the Federal Reserve’s independence—two macro threats that continue to shake investor confidence.

The Dow Jones Industrial Average dropped 500 points, or 1.3 percent, while the S&P 500 declined 1.4 percent. The tech-heavy Nasdaq Composite fared the worst, sliding 1.8 percent.

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The risk-off sentiment followed a weekend with no signs of progress on global trade negotiations. Instead, tensions appeared to intensify, with China warning other nations against striking deals with the U.S. that might undermine its interests.

Big tech names took a hit across the board. Tesla sank 5 percent, with chipmakers Nvidia and AMD down 4 percent and 2 percent, respectively. Meta Platforms and Amazon also retreated, each losing around 2 percent.

This sour mood in markets comes on the heels of another rough week for equities. The S&P 500 lost 1.5 percent last week, while the Dow and Nasdaq posted declines of over 2 percent—marking the third weekly drop in the last four.

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Trade concerns have been mounting since early April, when President Donald Trump announced a new wave of tariffs on imports. Since then, the major U.S. indices have tumbled roughly 7 percent.

The pressure doesn’t stop there. The Federal Reserve is increasingly being drawn into the political spotlight. Earlier in the week, Fed Chair Jerome Powell raised flags about how these trade measures might impair the central bank’s ability to manage inflation and support growth.

Meanwhile, the White House’s stance on the Fed is adding fuel to the fire. Trump on Thursday called for an immediate rate cut and hinted at firing Powell. A day later, economic adviser Kevin Hassett said the administration was actively evaluating the legal feasibility of removing the Fed chair.

The U.S. dollar index fell over 1 percent to 98.13, prompting a surge in safe-haven assets. Gold futures soared 2.4 percent to trade above $3,400 per ounce, hitting fresh all-time highs.

Looking ahead, the spotlight now turns to corporate earnings. More than 100 S&P 500 companies are slated to report results this week, including tech heavyweights Alphabet and Tesla, as well as Boeing, a key barometer for the industrial sector.