U.S. equity markets faced intense volatility Monday as former President Donald Trump renewed his criticism of Federal Reserve Chair Jerome Powell, sparking fresh investor concerns about political influence on monetary policy independence.
The Dow Jones Industrial Average plunged 971.82 points (2.48%) to 38,170.41, while the S&P 500 dropped 124.50 points (2.36%) to 5,158.2. The tech-heavy Nasdaq Composite saw the steepest decline, falling 415.55 points (2.55%) to 15,870.9.
Analysts suggest the remarks amplified existing market anxieties about prolonged high interest rates ahead of key inflation data this week. The developments carry implications for Asian markets given deepening financial interconnectivity, particularly in technology and manufacturing sectors.
Market strategists are advising investors to monitor how political rhetoric might impact the Fed's policy trajectory, with potential ripple effects across emerging Asian economies and cross-Pacific trade flows.
