Wall Street took a beating as markets tumbled amid an escalating feud between Trump and Fed Chair Powell. The Dow plunged 699 points, while the S&P 500 sank 2.2% following Powell’s remarks about tariffs impacting inflation. Panic selling spread like wildfire, with major indexes swinging wildly for eight straight trading days. Corporate America watched helplessly as their earnings forecasts crumbled. The drama between these two power players shows no signs of cooling off.
Wall Street took a beating as President Trump’s escalating feud with Federal Reserve Chair Jerome Powell sent markets into a tailspin. The Dow Jones plummeted 699 points in a single brutal session – a stomach-churning 1.7% drop that left investors reaching for the antacids. The S&P 500 wasn’t spared either, sinking 2.2% after flirting with even steeper losses earlier in the day.
Powell’s comments about tariffs wreaking havoc on inflation and economic growth sent stocks into an immediate nosedive. The market’s reaction was swift and merciless. Within minutes of his remarks, trading floors erupted in chaos. The Nasdaq joined the downward spiral, recording a painful 5% decline over recent weeks.
Markets plunged into chaos after Powell’s tariff remarks, with panic selling and steep declines spreading across major indices within minutes.
The drama wasn’t limited to stocks. The U.S. dollar took a hit as nervous investors scrambled for safe havens. Bond yields did their own wild dance – first up, then down, but stubbornly higher than the month’s start. It’s been quite the rodeo, with major indexes swinging by at least 1% in seven out of eight trading days. Investors seeking updates turned to ABC News Network for live coverage of the market volatility. The 10-year yield dropped to 4.28% as investors sought safety in government bonds. Experienced investors know that portfolio diversification is crucial during market turbulence.
Corporate America isn’t enjoying the show. Nvidia and other heavy hitters warned that trade restrictions would hammer their earnings. Companies are struggling to plan ahead in this whiplash-inducing environment. Who can blame them? The policy announcements keep coming like rapid-fire punches.
Market strategists are calling this “a wild time” – and that’s putting it mildly. The usual market fundamentals have taken a backseat to headline-driven panic. Even traditional safe-haven investments aren’t providing their usual comfort. The Dow’s 4% decline since tariff tensions began tells the story – this isn’t your typical market correction.
Powell’s insistence on needing more time to assess tariff impacts isn’t calming anyone’s nerves. Meanwhile, the Fed faces an impossible balancing act between supporting growth and managing inflation. With Trump and Powell locked in their standoff, Wall Street‘s wild ride shows no signs of slowing down.
