Financial Markets Decline Amid Trump’s Criticism of Federal Reserve and Escalating Trade Tariff Rhetoric

Global markets experienced significant downward pressure as former President Donald Trump renewed his critique of Federal Reserve policies and signaled potential trade restrictions, heightening investor uncertainty. The remarks exacerbated existing concerns over monetary policy divergence and geopolitical trade risks, triggering broad-based risk-off sentiment across equities and risk assets.

China VS. USA

Markets are also grappling with heightened trade tensions. China cut back on imports of various U.S. commodities last month, with some items seeing a complete halt in purchases, as tensions in the trade war between the two largest economies escalated.

China issued fresh warnings to countries considering trade deals with the U.S. that could undermine Chinese interests. 

Since Trump unveiled a new round of tariffs on April 2, the S&P 500 has declined by more than 8%, with the Nasdaq and Dow down by nearly 10% and 9%, respectively.

As earnings season ramps up, investors will be closely watching Tesla and Alphabet reports for signs of further cracks in the economy.