Trump's attacks on Powell shake global markets

US stocks and the dollar plummeted as President Donald Trump intensified his attacks on Federal Reserve chair Jerome Powell, calling him a "major loser" for not lowering interest rates. The S&P 500 fell 2.4%, and the Dow Jones Industrial Average dropped 2.5%. Trump's criticism comes as his tariff plans have driven a stock market sell-off and raised recession fears. The dollar index fell to its lowest level since 2022, while gold hit a record high as investors sought safe-haven assets.

Asia-Pacific markets were subdued on Tuesday, following Wall Street's sell-off after US President Donald Trump pressured Federal Reserve Chairman Jerome Powell. Japan's Nikkei 225 and Topix were flat, while South Korea's Kospi and Kosdaq rose slightly. Australia's S&P/ASX 200 and Hong Kong's Hang Seng Index fell, and mainland China's CSI 300 slipped. US stock futures were nearly flat. Trump's attacks on Powell raised questions about the central bank's independence, causing US stocks to drop overnight, with the Dow Jones Industrial Average falling 2.48%, the S&P 500 shedding 2.36%, and the Nasdaq Composite losing 2.55%. Gold prices hit a fresh record high amid the uncertainty, and Bitcoin rose to its highest level of the month as investors sought safe-haven assets.

US President Donald Trump escalated his criticism of Federal Reserve Chair Jerome Powell, calling him "Mr. Too Late" and "a major loser" for not cutting interest rates. US stocks fell, with the S&P 500, Dow Jones, and Nasdaq Composite declining 2.36%, 2.48%, and 2.55% respectively. The US dollar weakened to a three-year low, while gold prices hit a record high, indicating a loss of confidence in the US economy. Tesla shares dropped nearly 6% ahead of its earnings report, and Amazon delayed some data center lease commitments, according to Wells Fargo analysts. Experts warn that if Trump moves to remove Powell, markets could have a "severe reaction".

Stock futures rose on Tuesday morning after a sharp sell-off on Monday, with the Dow Jones Industrial Average futures adding 149 points, or 0.39%, and S&P 500 and Nasdaq 100 futures gaining about 0.5%. The previous day's decline was triggered by President Donald Trump's criticism of Federal Reserve Chair Jerome Powell, which increased uncertainty among investors. The Dow dropped over 970 points on Monday, marking its fourth straight losing session. Investors are now awaiting manufacturing survey results and several Fed officials' speeches, as well as earnings reports from Lockheed Martin and Tesla. UBS remains optimistic about the tech sector, citing solid fundamentals and the AI growth story, despite recent volatility.