Market Tumbles as Trump’s Fed Criticism Rattles Investors: What to Watch This Week
Stock markets are facing significant pressure today as investors react to President Trump’s criticism of the Federal Reserve and ongoing concerns about tariffs. As of Monday, April 21, 2025, major indexes are down sharply, continuing a troubling trend that has persisted through most of April.
Major Indexes Extend Losses as New Week Begins
The market’s downward trajectory continues today with all three major U.S. indexes showing significant declines. As of the latest data, S&P 500 futures have fallen 0.79%, while Nasdaq-100 futures have dropped 0.82%. The Dow Jones Industrial Average futures have tumbled 318 points, or 0.81%.
This follows a difficult previous week where the S&P 500 fell 1.5%, the Dow Jones Industrial Average slid 2.66%, and the Nasdaq Composite dropped 2.62% during the holiday-shortened trading period.
Trump’s Fed Criticism Shakes Market Confidence
A major factor driving today’s market decline is President Trump’s scathing attack against Federal Reserve Chair Jerome Powell. Reports indicate Trump’s team is evaluating whether they could fire Powell, raising serious concerns about the central bank’s independence.
“Markets are already on edge due to escalating geopolitical tensions, and now concerns are rising that Trump’s potential interference with the Fed could add another layer of uncertainty,” said Charu Chanana, chief investment strategist at Saxo in Singapore.
Chicago Federal Reserve President Austan Goolsbee expressed hope on Sunday that the United States is not moving toward an environment where the central bank’s independence is questioned. The Fed’s credibility as the world’s most powerful central bank largely rests on its historic ability to act free from political pressure.
Tariff Concerns Continue to Weigh on Markets
Ongoing uncertainty about President Trump’s tariff policies continues to pressure stocks. While Trump has paused some of the heftiest levies on imports, the U.S. remains locked in a trade battle with China.
Early April data from South Korea showed a sharp fall in exports, suggesting U.S. tariffs are starting to hit the global economy harder. South Korea and the United States are due to hold trade talks this week.
Fed Chair Powell expressed concern last week that the president’s levies could present difficulty for the central bank in controlling inflation and spurring economic growth.
Key Earnings Reports to Watch This Week
This week marks a crucial earnings period with over 100 S&P 500 companies set to report. Investors will be particularly focused on results from tech bellwethers as the “Magnificent Seven” megacap stocks have all fallen sharply in 2025.
Tuesday (April 22): Tesla (TSLA), GE Aerospace (GE), Verizon Communications (VZ), Intuitive Surgical (ISRG), RTX Corporation (RTX), Danaher Corporation (DHR), Lockheed Martin (LMT), and Elevance Health (ELV).
Tesla’s earnings will be particularly scrutinized as the company has seen its stock plummet more than 40% this year.
Wednesday (April 23): Phillip Morris International (PM), IBM (IBM), AT&T (T), ServiceNow (NOW), Thermo Fisher Scientific (TMO), Boston Scientific (BSX), NextEra Energy (NEE), Texas Instruments (TXN), Boeing (BA), and CME Group (CME).
Thursday (April 24): Alphabet (GOOG/GOOGL), Proctor & Gamble (PG), T-Mobile (TMUS), Merck (MRK), PepsiCo (PEP), Union Pacific (UNP), Gilead Sciences (GLD), Comcast (CMCSA), Fiserv (FI), and Bristol Myers Squibb (BMY).
Alphabet has seen its shares drop about 20% this year amid broader tech sector concerns.
Friday (April 25): AbbVie (ABBV)
Economic Data to Monitor
Beyond earnings, investors should watch for S&P Global’s flash manufacturing and services Purchasing Managers’ Indices (PMIs) for April across major economies, scheduled for release on Wednesday. These indices measure business activity based on new orders, employment, and confidence, with readings above 50 indicating expansion and below 50 signaling contraction.
Safe-Haven Assets Surge
As market uncertainty grows, investors are flocking to traditional safe-haven assets. Gold prices rose more than 1% today to touch a record high of $3,370.17 per ounce, bringing its gains so far this year to 26%.
Meanwhile, the Japanese yen and Swiss franc have strengthened significantly against the dollar, with the Swiss franc reaching its highest level against the dollar in over 10 years.
Market Outlook
While uncertainty persists, some analysts believe the worst market volatility may be behind us. Mike Dickson of Horizon Investments said “perpetual” swings in the market may be less frequent now, even if volatility remains.
“Continued uncertainty will likely cap stock market valuations and weigh on investors until greater clarity emerges,” Dickson noted. “Although the tariff situation remains fluid, we believe the roughly 10% daily and weekly market swings seen in recent weeks are behind us for now.”
As this crucial earnings week unfolds, investors will be watching closely for signs of how companies are navigating the challenging economic and political landscape, particularly regarding tariffs and their potential impact on global supply chains and profitability.
