Fed Chair Powell sinks stocks on tariff comments

Investors have stepped up sales of U.S. stocks after Federal Reserve Chairman Jerome Powell said policymakers would stand up to some kind of move, primarily for the president. Donald Trump’s In his view, tariffs are greater than expected.

He messaged it while channeling the fictional character Ferris Bueller from the 1986 film Ferris Bueller’s Day Off.

“As Chicago’s great Ferris Buhler once noted, “Life moves quite quickly. “For the time being, there’s been enough to wait more clearly before considering adjusting to policy stance,” he said in a prepared statement at Chicago’s economic club.

Fed’s Powell says central banks could face “challenging scenarios” due to tariffs

All three main averages were already low in the midday trade, but slid deep into the red at the closed bell.

Nasdaq Composite Bearing the brunt of losses, Dollar Tree and Seagate earned more than 3% among the biggest losers, with Tesla, Starbucks and Amazon falling more than 3%.

In Technology Stock, the S&P 500 fell by more than 2%, but consumer discretion and telecom stocks also fell.

Trump blows up China in an attempt to deceive tariffs

The Dow Jones industrial average fell 699.57 points (1.7%), led by Amgen and Apple, with Chevron and travellers below selling. Energy stock recorded moderate profits as oil rose above $62 per barrel mark.

In the bond market, the 10-year-old Treasury yield was reduced to 4.2%.

President Trump continues to send a message to his tariff strategy, including the recent 90-day suspension, whilst exempting several technology products, including smartphones.

President Donald Trump will ask questions from media members during a meeting with Israeli Prime Minister Benjamin Netanyahu at the White House Oval Office on April 7th. (Kevin Dietsch / Getty Images / Getty Images)

Over 60% of market participants are hoping to cut interest rates at their June meeting, followed by another meeting in July.

Powell also placed emphasis on inflation.

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“It is very likely that tariffs will at least produce a temporary rise in inflation. The inflation effect may be more sustained. The outcome will depend on the size of the effect, the time it takes to fully pass to the price, and ultimately, fully locking in the long-term inflation expectations,” he said.

Another inflation indicator can be seen in gold prices. This marked the largest daily percent increase since April 2020, reaching a fresh record of $3,326.60 per ounce, as tracked in Dow Jones market data.

The largest SPDR ETF, backed by physical gold, also rose in tandem.