US markets plunged Monday as President Donald Trump intensified his attacks on Federal Reserve Chair Jerome Powell, fuelling concerns about central bank independence and clouding the outlook for interest rate policy. The Dow Jones Industrial Average fell more than 950 points, while the S&P 500 and Nasdaq each dropped over 2%. The sell-off was led by the “Magnificent Seven” tech stocks, with Tesla and Nvidia logging steep losses. Investor sentiment was further weighed by persistent uncertainty over global trade negotiations and rising tensions with China. European markets were closed for the Easter Monday holiday, limiting global trading activity. Meanwhile, gold surged to record highs and the dollar slumped to a three-year low.

Key Takeaways:

  • Dow Posts Worst Day Since April Tariffs Announcement: The Dow Jones Industrial Average plummeted 971.82 points, or 2.48%, to finish at 38,170.41. Tesla and Caterpillar led the losses, while Nvidia also dragged on the index. The Dow is now down 9.6% since April 2, the day President Trump unveiled new tariffs.
  • S&P 500 Tumbles as Tech Stocks Sink: The S&P 500 shed 2.36% to close at 5,158.20, marking a continuation of the index’s slide amid macro and political uncertainty. Mega-cap tech names such as Amazon, Meta, and Apple saw sharp declines, amplifying downside pressure across sectors.
  • Nasdaq Logs Near 10% Slide from April Peak: The Nasdaq Composite dropped 2.55% to end the session at 15,870.90, nearly 10% below its April high. Tech heavyweights Tesla and Nvidia fell 5.8% and 4.7% respectively, while weakness spread to chipmakers and e-commerce names.
  • Asia Closes Mixed Amid China Rate Hold and Regional Divergence: Asia-Pacific markets finished mixed on Monday, reflecting investor caution amid Beijing-Washington tensions. China’s CSI 300 rose 0.33% after the PBOC kept loan prime rates unchanged. India’s Nifty 50 and Sensex both rallied over 1.3% on strong private bank earnings. Japan’s Nikkei dropped 1.30%, and South Korea’s Kospi rose 0.2% in choppy trade. The Kosdaq fell 0.32%, while Singapore’s STI added 1.18%. Australian and Hong Kong markets remained closed for Easter Monday.
  • Oil Drops Over 2% on US-Iran Diplomatic Breakthrough: Oil prices fell sharply as markets reacted to progress in US-Iran nuclear negotiations. Brent crude dropped $1.70, or 2.5%, to $66.26 a barrel, and WTI slid 2.47% to $63.08. Talks between US and Iranian officials yielded early agreement on a potential framework deal, raising the prospect of increased Iranian supply. Lingering demand concerns from tariffs and thin holiday liquidity added to downside momentum. OPEC+ is still set to raise output in May, but overproduction by some members could offset gains.
  • Treasury Yields Mixed Amid Policy Uncertainty and Fed Tensions: The benchmark 10-year US Treasury yield climbed 8 basis points to 4.411% as markets digested Trump’s attacks on Fed Chair Jerome Powell and braced for potential policy instability. Meanwhile, the 2-year yield fell 4 basis points to 3.758%, signalling short-term caution despite longer-term inflation expectations holding firm. 

FX Today:

  • EUR/USD Breaks Out to 2023 Highs on Bullish Momentum: EUR/USD surged 1.12% to close at 1.1517, its highest level since mid-2023. The pair confirmed a breakout above prior resistance with a strong green daily candle, extending a rally that has added over 400 pips since early April. All major moving averages — 50-day, 100-day, and 200-day — are now aligned to the upside, reinforcing bullish momentum. The steep slope of the 50-day SMA highlights the accelerating trend. Immediate resistance lies near the 1.1550–1.1600 zone, while support is seen at the 1.1350 breakout area. 
  • GBP/USD Pushes to Fresh Yearly Highs as Uptrend Accelerates: GBP/USD climbed 0.66% to finish at 1.3377, marking a new yearly high and extending a strong April rally. The pair has broken through prior resistance around 1.3300 and remains firmly above all major moving averages, with the 50-day SMA showing a strong upward slope. Momentum remains solid with a clear structure of higher highs and higher lows. Short-term resistance is now seen at 1.3400, with a move above potentially targeting the 1.3550–1.3600 area. Key support lies at the 1.3300 breakout zone and lower at 1.3100–1.3150. 
  • AUD/USD Eyes 200-Day SMA as Bullish Recovery Builds: AUD/USD rose 0.73% to close at 0.6419, continuing a rebound that began earlier this month. The pair has cleared both the 50-day and 100-day SMAs and now targets the 200-day at 0.6474. Recent price action broke a long-standing downtrend and established a fresh multi-week high, signalling growing bullish conviction. If buyers can force a daily close above the 200-day, upside targets near 0.6550–0.6600 come into view. Initial support is seen near 0.6380, with stronger buying interest expected around 0.6300. The trend has shifted to positive, but failure at the 200-day could trigger a near-term pullback.
  • NZD/USD Clears 0.6000 as Momentum Turns Decisively Bullish: NZD/USD jumped 1.11% to close at 0.6002, confirming a breakout above the 0.5950–0.5980 resistance zone and notching its highest close since late 2023. The pair has now rallied more than 450 pips in April, with strong bullish candle structures and consistent follow-through. Price is comfortably above the 50-day, 100-day, and 200-day SMAs, which are starting to converge, a possible signal of a broader trend shift. Resistance looms near 0.6050 and 0.6150, while initial support sits at the former breakout zone. The structure remains constructive as long as the pair stays above 0.5950.
  • USD/CHF Breaks Below 0.8100 as Downtrend Accelerates: USD/CHF slid 0.92% to 0.8079, extending its multi-session decline and reaching levels not seen in over a year. The pair has broken below the critical 0.8200 support area, deepening a bearish structure characterised by large red candles and failed rally attempts. It now trades well below its 50-day, 100-day, and 200-day SMAs, all of which are trending lower. Key support is at the psychological 0.8000 level. Any bounce toward 0.8200–0.8300 is likely to be sold into unless a reversal pattern emerges. The outlook remains bearish with further downside likely unless the pair reclaims 0.8300.
  • USD/JPY Sinks Under 141.00 to Lowest Close Since 2023: USD/JPY dropped 0.93% to settle at 140.79, marking a fourth straight day of losses and the weakest close in months. The pair has now breached the 142.00 support zone, and sellers remain firmly in control. Price action has been consistently bearish, with shallow rebound attempts and long upper wicks indicating failed rallies. The pair remains well below all major SMAs, which are downward-sloping. Next key support lies near the 140.00 round level, followed by potential downside toward 138.00. Unless USD/JPY can close back above 142.00, the trend bias remains to the downside.
  • Gold Surges to Record Highs as Dollar Hits Multi-Year Lows: Gold soared 2.84% to settle at $3,421, breaking above the critical $3,400 level and continuing its bullish trend. The move came as the US dollar slumped to a three-year low amid growing political pressure on the Fed. Technically, gold is trading well above its 50, 100, and 200-day SMAs, all of which are rising. The steep slope of the 50-day average highlights the strength of the uptrend. Immediate support lies near $3,375–$3,400, with further downside levels around $3,300 and $3,200. With bullish momentum accelerating, the path toward $3,500 remains open unless key supports break.

Market Movers:

  • Tesla Tumbles on Earnings Uncertainty: Tesla fell 5.8% after Barclays cut its price target ahead of the company’s first-quarter earnings. The firm cited “confusing” visibility and warned it will be increasingly difficult for Tesla to achieve volume growth in 2025.
  • Nvidia Extends Slide on China Export Risks: Nvidia declined 4.5%, adding to last week’s heavy losses after disclosing a $5.5 billion charge related to export restrictions on its H20 chips. The stock led the Dow lower as concerns mount about revenue risks tied to US-China tech tensions.
  • Chip Stocks Under Pressure as China Competition Grows: Broader semiconductor stocks sold off, with Taiwan Semiconductor Manufacturing down 2.6%, AMD off 2.2%, and Broadcom lower by 2.8%. Analysts warned that US chip controls may accelerate gains for China’s domestic AI chipmakers, creating headwinds for US firms.
  • Amazon Drops on Tariff Worries and Downgrade: Amazon slipped 3.1% after Raymond James downgraded the stock from “strong buy” to “outperform.” The firm flagged risks tied to the tariff environment and noted that macro headwinds could weigh on consumer demand and logistics costs.
  • Netflix Climbs on Earnings Beat and Tariff Resilience: Netflix rose 1.5% following strong first-quarter results that beat on both revenue and earnings. The company noted limited exposure to tariffs, and multiple analysts raised their price targets in response to the results.
  • MicroStrategy Gains as Bitcoin Rallies: MicroStrategy, recently rebranded as Strategy, edged higher in Monday trading. The move came as Bitcoin jumped over 3% to its highest level of the month, helping offset broader equity market declines and US dollar weakness.

Markets closed sharply lower on Monday as political turmoil and economic uncertainty converged to rattle investor confidence. President Trump’s escalating attacks on Fed Chair Jerome Powell cast a shadow over monetary policy, while ongoing trade tensions and weak visibility into tariffs left traders searching for direction. Tech stocks bore the brunt of the sell-off, dragging the broader indexes into correction territory since early April. Meanwhile, gold’s surge and the dollar’s plunge signalled deepening caution. With earnings season continuing and geopolitical risks rising, all eyes now turn to Powell’s potential response and further developments in US-China negotiations.