UBS Global Wealth Management Portfolio manager Angie Pneummon discussed the market response amid trade tension and advised customers and investors.
The stock collapsed on Monday as investors looked for signs of progress on business talks, and President Donald Trump continued to criticize Federal Reserve President Jerome Powell.
Dow Jones Industrial Average declined more than 1,000 points, or more than 2.8%, while S&P 500 and Nasdaq Composite were 2.9%and 3.2%below respectively.
Trump, in a post on Truth Social, attacks Powell and claims that energy costs and food prices are “quite low” and that “virtually there is no inflation.”
Trump said, “trending so well with these costs, just the prediction I made can be almost no inflation, but the slow pace of the economy can slow down until Sri Sri too late, a major losers, reducing interest rates,” Trump said.
The President’s comments come last week after being stated in a true social post that Powell “is always too late and wrong” and that, “Powell’s termination cannot come very fast.”
President Donald Trump (L) attacked Federal Reserve President Jerome Powell on Truth Social on Monday. (Through Saul Loaib / AFP Getty Image / Getty Image)
Energy stock was the worst hit on Monday, falling 2.3%, while the decline in megacap and growth stock was weighed on information technology and consumer discretionary areas.
Shares of “Fantastic Seven” also did less trading, with Tesla falling 7% and NVidia fell below 5% in the afternoon trading.
Continuous attacks on Powell increased the concerns about Fed’s freedom in setting up a monetary policy path in the world’s largest economy, already reduced the investor trust in American assets with Trump’s comprehensive trade tariff.
| Langer | Security | Last | Change | Change % |
|---|---|---|---|---|
| Me: DJI | Dow jones average | 38105.96 | -1,036.27 |
-2.65% |
| SP500 | S&P 500 | 5136.28 | -146.42 |
-2.77% |
| I: Comp | Nasdac overall index | 15791.412106 | -495.04 |
-3.04% |
| TSLA | Tesla Inc. | 241.37 | -0.18 |
-0.07% |
| NVDA | Nvidia Corp. | 101.49 | -3.00 |
-2.87% |
These are American industries that can be placed on the wall by tariffs on China
Federal Reserve Bank of Chicago President Auston Gulasbi said in a presence on CBS on Sunday, “” “” “” “”Facing the nation with Margaret Brainon“Independence of central banks and monetary policy is important.
“There is almost a monopoly among economists that political intervention is able to do monetary freedom, that Fed or any central bank is able to do the work he needs, really important,” Gulsbi said.
“I strongly hope that we do not take ourselves to an environment where monetary freedom is questioned, because he – which will reduce the credibility of the fed,” he said.
Tariff concerns continued to bother investors after China’s warning against striking deals with the US at the expense of Beijing. Fed policy makers also flagged a cloud interest-rate approach due to tariff uncertainty.
President Donald Trump, left, and Chinese President Xi Jinping. (Getty Image / Getty Image)
According to data compiled by LSEG, traders are now being priced in about 90 base points of reducing the fed this year.
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Uncertainty on trade and monetary policy has given a tough fight to shares this year, with the S&P 500 to fall by more than 15% of its February record high.
Fox Business’ Eric Revell and Reuters contributed to this report
