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U.S. President Donald Trump speaks as he meets with Italian Prime Minister Giorgia Meloni (now not pictured) within the Oval Office on the White House in Washington, D.C., U.S., April 17, 2025.
Evelyn Hockstein | Reuters
Yesterday’s version of this article cautioned that U.S. President Donald Trump’s want to intrude within the Federal Reserve, as he expressed to newshounds on Friday, may possibly lead to upheaval within the markets. That did not occur as a result of markets have been closed for the Good Friday vacation.
On Monday, buying and selling resumed. So have Trump’s assaults at the central financial institution — and, extra pointedly, on Fed Chair Powell, describing him as “Mr. Too Late” and “a major loser” for now not slicing rates of interest. Trump appointed Powell to the Federal Reserve’s absolute best seat in his first presidential time period all over 2017.
With no marketplace closure to protect stocks from Trump’s threats, traders unloaded their shares. All main U.S. indexes fell, weighed down through steep declines within the “Magnificent Seven” staff of stocks. The U.S. greenback weakened to a three-year low whilst gold costs hit a brand new prime, suggesting, together, that world traders are shedding self belief within the U.S. financial system and reallocating their capital to more secure belongings protected against Trump.
What you want to understand these days
Trump escalates assaults on Powell
U.S. President Donald Trump on Monday renewed and escalated his assaults on Federal Reserve Chair Jerome Powell. ″’Preemptive Cuts’ in Interest Rates are being referred to as for through many,” Trump stated on Truth Social. “There could be a SLOWING of the financial system except Mr. Too Late, a big loser, lowers rates of interest, NOW,” Trump wrote, relating to Powell. On Friday, Trump additionally referred to as for Powell to chop charges.
Stocks and U.S. greenback fall as gold hits prime
Stocks within the U.S. fell Monday. The S&P 500 misplaced 2.36%, the Dow Jones Industrial Average tumbled 2.48% and the Nasdaq Composite was down 2.55%. The ICE U.S. Dollar Index fell as little as 97.92 on Monday, the lowest degree since March 2022, in keeping with FactSet. Gold costs jumped to $3,452.30 per ounce, a fresh record. Asia-Pacific markets traded mixed Tuesday. Hong Kong’s Hang Seng Index climbed just about 0.5% however Japan’s Nikkei 225 declined roughly 0.2%. The Bank of Japan will likely pause rate hikes in its May meeting, said Moody’s Analytics.
Shares of Tesla drop before earnings
Tesla shares fell almost 6% on Monday, a day ahead of its first-quarter earnings report. The stock is now down 44% for the yr after wrapping up their worst quarter since 2022 in March. In the online forum that Tesla solicits investor inquiries before its earnings calls, one investor, referring to CEO Elon Musk, asked, “What steps has the board of administrators taken to mitigate the emblem injury brought about through Elon’s political actions?”
Vance and Modi optimistic on deal
India’s Prime Minister Narendra Modi met U.S. Vice President JD Vance, who was in India for a mostly personal trip, in the nation’s capital on Monday. A statement from Modi’s office said the two leaders “welcomed the numerous growth within the negotiations for a mutually advisable India-U.S. Bilateral Trade Agreement.” On Monday, U.S. Trade Representative Jamieson Greer stated each nations have “finalized the phrases of reference to put down a roadmap for the negotiations on reciprocal commerce.”
Nomura to buy parts of Macquarie
Japanese investment bank and brokerage group Nomura said Tuesday it will buy the U.S. and European public asset management businesses of Macquarie, an Australian investment banking company, for $1.8 billion. The all-cash deal is expected to close by the end of this year, subject to regulatory approvals.
[PRO] Markets could have ‘severe’ reaction to Trump
Stocks and bonds would likely have a “severe response” and sell off sharply if Trump makes a move to get rid of Federal Reserve Chair Jerome Powell, Evercore ISI’s vice chairman, Krishna Guha, told CNBC’s “Squawk Box” Monday. While Powell has said he doesn’t believe the president can legally remove the Fed Chair, Guha highlighted one way that Trump can pressure Powell without firing him.
And in any case…
Nurphoto | Nurphoto | Getty Images
As the dollar falters, the world’s central banks tread a tightrope — devalue their currency or not
Uncertainty about U.S. policymaking has led to a flight from the greenback and Treasurys in recent weeks, with the dollar index weakening more than 9% so far this year. The drop in the U.S. dollar has led other currencies to appreciate against it, especially safe havens such as the Japanese yen, the Swiss franc and the euro.
While a stronger local currency might help tame inflation through cheaper imports, it complicates export competitiveness particularly under renewed U.S. tariffs, said Thomas Rupf, VP Bank’s co-head for Singapore and Asia chief investment officer.
Currency devaluation is likely to be more of an active consideration across emerging markets, particularly in Asia, said Nick Rees, head of macro research at Monex Europe. However, those countries and Asian central banks will need to tread a fine line to avoid capital flight and other risks.
