On Monday night, stock futures edged lower following a tumultuous trading day on Wall Street. This downturn was largely attributed to President Donald Trump’s latest remarks targeting Federal Reserve Chair Jerome Powell, which intensified market uncertainty. Futures linked to the Dow Jones Industrial Average fell by 75 points, reflecting a 0.2% decrease. Similarly, S&P 500 futures and Nasdaq 100 futures also experienced a decline of 0.2%.
Monday night’s market activity comes in the wake of a significant sell-off earlier in the day. The Dow plummeted more than 970 points during the regular trading session, while both the S&P 500 and Nasdaq Composite saw declines exceeding 2%. This marked the fourth consecutive losing session for both the Dow and the Nasdaq.
Investor sentiment has soured significantly after Trump expressed concerns on Truth Social, suggesting that the economy would continue to slow unless the Fed implemented interest rate cuts. In his latest posts, Trump has openly disparaged Powell, referring to him as “Mr. Too Late” and labeling him a “major loser.” Additionally, Trump hinted at the possibility of Powell’s termination, an unprecedented move that has raised eyebrows among economic advisors. White House economic advisor Kevin Hassett indicated that this option is currently under consideration by Trump’s team.
Despite the mounting pressure, Powell has reassured the public that he cannot be dismissed under current laws and plans to fulfill his term, which is set to conclude in May 2026. This legal shield provides some stability in a market that has already been rocked by volatility.
Monday's sharp market decline is part of a broader trend of instability that has plagued stocks since Trump first announced reciprocal tariffs on April 2. Since that announcement, the three major indexes have each dropped more than 9%. Larry Tentarelli, founder of the Blue Chip Daily Trend Report, noted the growing uncertainty surrounding the tariff cycle and the overall economy. He emphasized that adding another layer of uncertainty with Powell’s situation only heightens market volatility.
Looking ahead, investors will be closely monitoring the manufacturing survey results from the Richmond Fed scheduled for Tuesday morning. Additionally, several Federal Reserve officials, including Fed Vice Chair Philip Jefferson, Minneapolis Fed President Neel Kashkari, and Fed Gov. Adriana Kugler, are slated to deliver speeches throughout the day. These events could provide further insight into the Fed's monetary policy and its potential impact on the markets.
