The stock market and the U.S. dollar slipped on Monday as fears persisted over tariffs and President Donald Trump’s public criticism of the Federal Reserve, propelling safe-haven gold to a fresh record high.
Trump launched a series of criticisms against Federal Reserve Chair Jerome Powell on Thursday, with his team evaluating the possibility of terminating Powell’s position, a move that threatens the central bank’s independence and impacts global markets. Some markets, particularly in Europe, remain closed for Easter Monday.
In the U.S. stock market, S&P 500 futures fell 0.70 percent while Nasdaq futures dipped 0.72 percent. In addition, the Dow Jones Industrial Average declined 1.33 percent to 39,142.23.
Meanwhile, the U.S. dollar fell 1.08 percent to 98.30 as of 6:24 GMT.
Asian shares mixed
In the Asian stock market, Japan’s Nikkei fell 1.18 percent while South Korea’s KOSPI Composite Index gained a modest 0.10 percent. The Taiwan Weighted Index slipped 1.49 percent while the Shanghai Composite Index gained 0.47 percent.
The broader Topix index fell 1.03 percent to 2,532.75. Meanwhile, Hong Kong’s Hang Seng Index gained 1.61 percent to 21,395.14.
Stock markets remain cautious due to escalating geopolitical tensions, tariff fears and Trump’s potential interference with the Fed. Analysts noted that any signs of political pressure on monetary policy could impact the Fed’s independence and complicate the interest rate path as investors look for stability amid global trade volatility.
Trump’s tariffs have triggered shock waves through markets globally and a selloff in Treasuries and the dollar, raising doubts about the longstanding belief that U.S. assets are a safe haven. This drop in confidence in U.S. assets has been fuelled further by Trump’s attacks on the Fed, with the dollar declining against most other currencies.
Notably, the euro hit a three-year high on Monday, while the yen sat at a seven-month peak. The Swiss franc also rose to its highest against the dollar in over 10 years.
U.S. earnings in focus
The U.S. earnings season is kicking off with investor focus this week shifting to the results of Alphabet, Intel and Tesla. The Magnificent Seven’s stocks have lost significantly this year, with Alphabet down about 20 percent and Tesla losing around 40 percent.
In the U.S. tech stock market, Nvidia shares fell 2.87 percent, Apple gained 1.39 percent and Microsoft lost 1.03 percent to $371.61. In addition, Alphabet was down 1.38 percent to $155.5, Tesla decreased 0.075 percent, Meta was down 0.17 percent, and Amazon fell 0.99 percent.
“Global investor sentiment remains fragile following renewed tariff tensions that have reignited concerns about economic fragmentation. In this context, the IMF and World Bank Spring Meetings in Washington, D.C. will be closely watched for commentary on global economic resilience and trade,” noted Iridium in its weekly report.
The April Global Manufacturing PMI will offer a timely read on industrial momentum. In earnings, investor attention will turn to upcoming results from key U.S. corporations, including Alphabet, Boeing, IBM, Intel and Tesla. Management guidance may prove influential in shaping equity market direction.
In Asia, the People’s Bank of China is set to hold its monetary policy meeting, with markets looking for targeted easing measures to mitigate the impact of recent U.S. tariffs.
Read: Oil prices fall to $66.86 as tariff concerns, economic uncertainty grow
GCC banks to report results
In the GCC stock market, investors expect regional equities to extend last week’s momentum, supported by 5 percent higher crude oil prices following renewed U.S. sanctions on Iran and encouraging developments in US-EU trade negotiations.
In its latest market report, Iridium noted that a wave of 1Q 2025 earnings will also guide sentiment. Results are expected from ADIB, Ahli Bank, Alinma Bank, CBD, DIB, Emirates NBD, Masraf Al Rayan, Palms Sports, Qatar Electricity & Water Company, Zain Bahrain and many other.
Earnings calls are scheduled for Alinma Bank, Bank Nizwa, Doha Bank, Emirates NBD, Vodafone Qatar, among others. Meanwhile, shareholder meetings at ADSB, Agthia, BHM Capital, Lulu Retail, and Zain KSA will address decisions such as dividends and bonus share issuances.
