April 21, 2025 — U.S. stock markets plunged on Monday as investors reacted to renewed trade tensions and sharp criticism from former President Donald Trump toward Federal Reserve Chair Jerome Powell.

By 10:51 AM ET:

• 📊 S&P 500 fell 119 points (-2.3%)
• 💻 Nasdaq Composite dropped 437 points (-2.7%)
• 🏦 Dow Jones Industrial Average declined 851 points (-2.2%)

The sharp declines came after a long holiday weekend, with U.S. markets closed on Good Friday and much of Europe on break for Easter Monday, resulting in low trading volume.

🚨 Tariffs, Tensions & Central Bank Drama

Trump’s announcement of sweeping new tariffs raised fears of a trade war and potential inflation. Analysts at Vital Knowledge suggest April 2 may mark the peak of tariff announcements, though many remain skeptical about achieving trade deals during the current 90-day negotiation period.

Adding fuel to the fire, Trump revived public attacks on Fed Chair Jerome Powell, urging a “preemptive” rate cut via his Truth Social account, claiming “almost no inflation” and warning of a slowdown unless rates are slashed.

💬 “There can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late… lowers interest rates, NOW,” Trump wrote.

Economic adviser Kevin Hassett added that the White House is exploring whether Trump could legally fire Powell—raising concerns about the independence of the U.S. central bank.

🧠 Vital Knowledge warned: “Even if tariff-driven inflation is temporary, market nerves could remain frayed for 6–12 months.”

💼 Earnings Season Kicks Off

Investors are bracing for a busy week of earnings, with reports from big-name companies:

• 🧠 Alphabet (GOOGL)
• 🚗 Tesla (TSLA)
• 💾 Intel (INTC)
• 💊 Merck (MRK)
• 🖥️ IBM (IBM)
• 🧼 Procter & Gamble (PG)
• ✈️ American Airlines (AAL)

These reports are expected to influence investor sentiment amid recent volatility. Many will be watching to see if these companies can offer reassurance in the face of policy-driven market turbulence.

📉 Volatility & 📈 Streaming Strength

The VIX volatility index, often called the market’s “fear gauge,” has eased to around 30, down from highs near 60 earlier in the month. Still, inflation worries and weakening consumer sentiment remain a concern.

🎬 On a brighter note, Netflix (NFLX) shares rose after strong quarterly earnings. Despite economic uncertainty, co-CEO Greg Peters said consumer behavior remains stable so far, with no major signs of spending pullback.

🪙 Gold Surges, 🛢️ Oil Slips

Amid the uncertainty, gold hit a record high:

• 📈 Spot gold rose 2.7% to $3,415.92
• 📈 Gold futures gained 3% to $3,427.89

The rally was supported by a weaker U.S. dollar and rising demand for safe-haven assets.

Meanwhile, oil prices fell, driven by:

• Progress in U.S.-Iran talks (which could increase supply)
• Ongoing concerns that a tariff-driven slowdown could reduce global oil demand

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