US Stock Market LIVE Updates | April 21, 2025
US stock markets experienced a sharp selloff on Monday, April 21, 2025, with the S&P 500 plunging by 1.9% as the political spotlight intensified on Federal Reserve Chairman Jerome Powell. The latest market moves came as President Donald Trump escalated his criticism of Powell, directly targeting the Federal Reserve’s monetary policy decisions on social media.
Trump vs. Powell: Growing Tension Drives Market Volatility
President Trump took to Truth Social to launch a fresh barrage against Powell, accusing the Fed Chair of inaction on inflation and calling for “preemptive cuts” to interest rates. Despite the Fed’s preferred inflation measure remaining above the target, Trump asserted there was “virtually no inflation,” stoking fears among investors that political pressure could destabilize the Fed’s commitment to managing inflation through its current monetary policies.
This sharp escalation of Trump’s rhetoric led to heightened market uncertainty, triggering a selloff in US equities. The tension surrounding the Federal Reserve weighed heavily on longer-dated US Treasuries, causing bond yields to rise, with the 10-year yield nearing 4.4%, reflecting growing investor unease.
Treasury Yields and Dollar Under Pressure
The bond market reacted swiftly to the political developments, with long-term government bonds experiencing a significant decline. As a result, the US dollar weakened, dropping to a 15-month low on the dollar index. This weakening of the dollar added pressure to US financial markets, as international investors looked for safer alternatives.
Safe-Haven Assets Surge: Gold and Swiss Franc Shine
As US equities and the dollar struggled, investors flocked to safe-haven assets. Gold prices surged, hitting a new record high above $3,400 per ounce, as concerns about market instability pushed traders toward the precious metal. The Swiss franc also saw strong gains, leading a rally in other Group-of-10 currencies as investors sought shelter from the volatility in the US market.
Looking Ahead: Fed’s Next Moves and Inflation Concerns
While President Trump has been vocal in his calls for the Federal Reserve to lower interest rates, the economic reality remains complex. The most recent inflation reading, which remains above the Fed’s target, signals that inflationary pressures are still a concern despite the political rhetoric. With the next inflation data set to be released next week, investors are bracing for any potential shifts in the Federal Reserve’s policy stance, which could influence market movements even further.
