Monday marked a day of turmoil in the U.S. markets as stocks plummeted in the face of renewed political tensions surrounding Federal Reserve independence.

Trump’s Attacks on the Fed

President Donald Trump took to Truth Social to express his discontent with Fed Chair Jerome Powell, labeling him “Mr. Too Late” and accusing him of past political bias and inflation misjudgment.

Trump wrote that there’s “virtually no inflation” and warned of an economic slowdown unless Powell acts “NOW.”

Trump’s remarks reignited fears that central bank independence may be under direct threat, sparking concerns about the U.S. dollar’s stability.

The U.S. Dollar Index Falls

The DXY fell as much as 1%, marking its lowest level since early 2022, as the greenback weakened against a basket of major currencies.

Gold and Bitcoin Soar

• Gold prices surged 2.6% to $3,410 per ounce, pushing the year-to-date gain to nearly 30%.
• Bitcoin BTC/USD gained 3.5% to trade at $88,274, echoing gold’s momentum as investors seek alternatives to fiat currencies.

Gold-linked equities were the few bright spots in an otherwise brutal session, as investors sought safe-haven assets amid persistent demand for gold.

Market Performance

The tech-heavy Invesco QQQ Trust Series QQQ tumbled 3% to $430.76, while the iShares Russell 2000 ETF IWM fell 2.3% to $182.28.

Sector Performance

• The Consumer Staples Select Sector SPDR Fund XLP outperformed, yet fell 1.4%; the Consumer Discretionary Select Sector SPDR Fund XLY lagged, down 3.5%.
• Every major sector was in the red, with 490 of the 500 S&P 500 stocks trading lower.

The S&P 500 dropped 2.8% by midday, with the Nasdaq 100 falling 3%, as investors sought safe-haven assets amid growing uncertainty.

Volatility Spikes

The CBOE Volatility Index (VIX) jumped 15%, signaling increased investor anxiety.

DXY

The U.S.