Dow plunges 1,000 points as Trump attacks Fed's Powell, trade uncertainty weighs

Stocks fell on Monday as investors watched for signs of progress on trade talks, and after President Donald Trump continued criticizing Federal Reserve Chairman Jerome Powell.The Dow Jones Industrial Average tumbled more than 1,000 points, or 2.8%, while the S&P 500 and Nasdaq Composite were down 2.9% and 3.2%, respectively.Trump, in a post on Truth Social, attacked Powell and claimed energy costs and food prices are "substantially lower" and that there is "virtually No Inflation.""With these costs trending down so nicely, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW," Trump said.The president's comments come after he said in a Truth Social post last week that Powell is "always TOO LATE AND WRONG" and that, "Powell's termination cannot come fast enough."Energy stocks were the worst hit on Monday, falling 2.3%, while declines in megacap and growth stocks weighed on the information technology and consumer discretionary sectors.Shares of the "Magnificent Seven" also traded lower, with Tesla falling 7% and Nvidia down more than 5% in afternoon trading.The continued attacks on Powell increased worries about the Fed's independence in setting a monetary policy path in the world's largest economy, hitting investor confidence in U.S. assets already diminished by Trump's sweeping trade tariffs.THESE ARE THE US INDUSTRIES THAT COULD BE WALLOPED BY TARIFFS ON CHINAAustan Goolsbee, president of the Federal Reserve Bank of Chicago, said Sunday in an appearance on CBS' "Face the Nation with Margaret Brennan" that the independence of central banks and monetary policy is crucial."There's virtually unanimity among economists that monetary independence from political interference, that the Fed or any Central Bank be able to do the job that it needs to, is really important," Goolsbee said."I strongly hope that we do not move ourselves into an environment where monetary independence is questioned, because that – that would undermine the credibility of the Fed," he added.Tariff worries continued to haunt investors after China's warning against striking deals with the U.S. at Beijing's expense. Fed policymakers also flagged a cloudy interest-rate outlook owing to tariff uncertainty.Traders are now pricing in about 90 basis points of easing from the Fed this year, according to data compiled by LSEG.CLICK HERE TO GET FOX BUSINESS ON THE GOThe uncertainty over trade and monetary policy has hit stocks hard this year, with the S&P 500 down more than 15% from its February record high.FOX Business' Eric Revell and Reuters contributed to this reportWeiter zum vollständigen Artikel bei FOX Business Weiter zum vollständigen Artikel bei FOX Business