MARKET SNAPSHOT

U.S. stocks fell sharply after President Trump threatened to fire Fed Chair Jerome Powell. Treasury yields were mixed as the 10-year yield roses while the two-year fell as investors worried about Powell's fate. Oil fell on a potential easing of sanctions on Iranian crude and as U.S.-China trade tensions continued. The dollar fell and gold rose 3% -- to another record -- as investors eyed a possible move by Trump to replace Powell.

MARKET WRAPS

EQUITIES

The "Sell America" trade intensified.

President Trump's threats to fire Federal Reserve Chair Jerome Powell exacerbated turmoil wrought by the administration's trade restrictions and sent stocks plunging. Trump on Monday demanded lower interest rates in a post on social media, saying inflation is trending downward and the economy could slow "unless Mr. Too Late, a major loser, lowers interest rates, NOW."

The Dow Jones Industrial Average fell 2.5%, the S&P 500 lost 2.4%, while the Nasdaq Composite shed about 2.6%.

Threats to Powell's job marked a new source of uncertainty for investors, who said eroding confidence in the independence of the U.S. central bank could deal a significant blow to the value of stocks, bonds and the dollar. While Trump made similar threats against the Fed in his prior term, investors now worry that tariffs could rekindle pandemic-era inflation, requiring the central bank to keep rates higher, not lower.

Earlier Monday, Chinese shares ended higher, supported by resources and software stocks. Gold-mining companies rose broadly.

The benchmark Shanghai Composite Index ended 0.45% higher, the Shenzhen Composite Index and the ChiNext Price Index climbed 1.6% each.

Japanese stocks ended lower as uncertainty over U.S. tariffs and their economic implications persisted. Auto and machinery stocks led the losses. The Nikkei Stock Average fell 1.3%.

Australia's S&P/ASX 200 and New Zealand's NZX-50 were closed for the Easter Monday holiday.

COMMODITIES

Last week's oil rally petered out as U.S. talks over Iran's nuclear program opened the door to an eventual easing of sanctions against Iranian crude, while U.S.-China trade tensions kept demand concerns alive.

West Texas Intermediate settled down 2.5% at $63.08 a barrel, while Brent crude fell 2.5% to $66.26 a barrel.

Rystad Energy estimated that a prolonged trade war could cut China's oil demand growth this year by half to 90,000 barrels a day. "However, the seasonal summer increase in oil demand will be key to watch, in addition to crude demand by refineries versus oil supply," Rystad's Mukesh Sahdev said.

April gold rose above the $3,400 an ounce threshold for the first time and closed up 3% at $3,406.20 a troy ounce.

The increase marked the seventh session out of the past nine that the front-month contract has closed higher, driven by ramped-up rhetoric from President Trump toward replacing Fed Chair Jerome Powell. Central banks around the world continue to buy gold, said ADM Investor Services, a sign of its increased appeal as a hold of value versus the U.S. dollar.

TODAY'S TOP HEADLINES

Trump Renews Call for Rate Cut, Slams Fed Chair

President Trump on Monday renewed his call for the Federal Reserve to immediately cut interest rates to cushion the potential fallout from his trade war.

Trump pointed to inflation data from March, before this month's tariffs took effect, to support his demand that Fed Chair Jerome Powell reduce interest rates.

"There is virtually no inflation," Trump said in a Truth Social post. "Powell has always been 'To [sic] Late.'" Trump also referred to the Fed chair as a "major loser."

China Warns Against Trade Deal With U.S. at Beijing's Expense

China has warned countries against making trade deals with the U.S. that could hurt Beijing's interests.

"China firmly opposes any party reaching a deal at the expense of China's interests," the Ministry of Commerce said Monday, adding that it would respond "resolutely" with reciprocal countermeasures should such a situation arise.

The ministry also said China is willing to strengthen solidarity and coordination with all parties, work together to respond to challenges, and oppose unilateral bullying.

Justice Department Urges Tough Action to Break Google's Search Dominance

WASHINGTON-The Justice Department on Monday urged a federal judge to loosen Google's grip on the search-engine market by forcing a sale of its Chrome web browser, kicking off the latest phase of a landmark antitrust case.

U.S. District Judge Amit Mehta, who ruled last year that Alphabet's Google has illegally maintained a monopoly in online search, has set aside three weeks to hear arguments and testimony over what remedy he should impose to restore competition.

"We're at an inflection point," Justice Department lawyer David Dahlquist told Mehta on Monday. "This court has an opportunity to remedy a monopoly that has controlled the internet for today's generation and restore competition for decades to come."

FTC Sues Uber, Alleging Deceptive Billing, Cancellation Practices

The Federal Trade Commission sued Uber over deceptive billing and cancellation practices regarding its Uber One subscription service.

The lawsuit, filed Monday, alleged that the ride-hailing company's subscription service charged consumers without their consent, failed to deliver promised savings and made it difficult for users to cancel.

The lawsuit said that some customers who signed up for a free trial were automatically charged before their trial ended, even though the company promises the ability to cancel at no charge during the trial period.

Chipotle to Open Mexico Location, Testing Expansion into Latin America

Chipotle Mexican Grill will open a storefront in Mexico and look to expand into additional markets in the region.

The burrito chain on Monday said it signed a development agreement with Alsea, a restaurant operator in Latin America and Europe, to open a location in Mexico by early 2026.

Chief Business Development Officer Nate Lawton said Mexico's familiarity with Chipotle's ingredients and its affinity for fresh food make it an attractive growth market for the company.

Expected Major Events for Tuesday

05:00/JPN: Mar Steel Production

07:00/MAL: Apr International Reserves, middle of month

08:00/TAI: Mar Export Orders

08:00/TAI: Mar Employment / Unemployment

08:30/HK: Mar Unemployment

08:30/HK: Mar Underemployment

21:00/SKA: Apr Consumer Sentiment Index

23:00/AUS: Apr Australia Flash PMI

23:30/JPN: Feb Final Labour Survey - Earnings, Employment & Hours Worked

All times in GMT. Powered by Onclusive and Dow Jones.

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

April 21, 2025 16:53 ET (20:53 GMT)

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