Stocks opened lower Monday, and selling accelerated throughout the session. Today's declines were a result of continued losses in several of Wall Street's biggest stocks and growing chatter over President Donald Trump's desire to fire Federal Reserve Chair Jerome Powell.
The three main indexes all started the day with losses of 1% or more. At the close, the blue chip Dow Jones Industrial Average was down 2.5% at 38,170, the broader S&P 500 was off 2.4% at 5,158, and the tech-heavy Nasdaq Composite was 2.6% lower at 15,870.
Big drops for several mega-cap stocks created notable pressure, with Nvidia (NVDA, -4.5%), Amazon.com (AMZN, -3.1%) and Apple (AAPL, -1.9%) among the worst Dow Jones stocks today.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
UnitedHealth Group (UNH) continued its historic post-earnings slide, too, dropping 6.3% to bring its two-day decline to 27%.
Tesla stock slides ahead of earnings
Tesla (TSLA), meanwhile, slid 5.8% ahead of its turn on the earnings calendar, slated for after Tuesday's close.
The latest drome came after Reuters reported the electric vehicle maker could delay the release of its lower-priced Model Y until 2026.
TSLA stock is now down 44% for the year to date amid slowing sales and backlash against CEO Elon Musk. Analysts expect the automaker's first-quarter results to show declines in both its top and bottom lines.
Discover pops on Capital One merger approval
In single-stock news, Discover Financial Services (DFS) was the best S&P 500 stock amid the broader sell-off, gaining 3.6% after regulators approved Capital One Financial's (COF, +1.5%) $35.5 billion purchase of the digital banking and credit card company.
The merger will create the eighth biggest U.S. bank, with assets of roughly $637.8 billion, and is expected to close on May 18.
Netflix gains in delayed earnings reaction
Netflix (NFLX) was another notable gainer Monday, rising 1.5% after the streaming giant reported earnings late Thursday. (Friday was a stock market holiday, with markets closed in observance of Good Friday.)
For the three months ending March 31, Netflix said first-quarter earnings were up 25.2% year over year to $6.61 per share, while revenue rose 12.5% to $10.5 billion.
This was the first quarter that Netflix did not disclose its subscriber numbers.
And while Trump's tariff uncertainty has created headaches for several U.S. companies, Netflix maintained its full-year revenue forecast, noting "there's been no material change" to its "overall business outlook" since its last earnings report.
Trump accelerates attacks on Powell
Arguably, the biggest impact on the markets today was Trump's increasing attacks against Fed Chair Powell.
The president posted this morning on Truth Social that the economy will slow "unless Mr. Too Late, a major loser, lowers interest rates, NOW," which sent the 10-year Treasury yield up 8.2 basis points to 4.409% and the dollar tumbling to a three-year low.
Powell's term ends in a little over a year from now, in May 2026. But Kevin Hassett, director of the National Economic Council, said last Friday that the president is "studying" whether the head of the U.S. central bank can be removed from his post before then.
Today's price action "sends a clear signal risk to Fed independence is negative for all major U.S. asset classes and provides a partial foretaste of what might come if President Trump – who again tweeted his demand for preemptive Fed rate cuts – were to actually try to fire Powell," say Evercore ISI analysts.
Gold prices gain as the dollar drops
The drop in the dollar boosted gold prices, which also got a lift from their safe-have status. Gold futures closed up 3% at $3,406.20 per troy ounce – a new record high.
Mason Mendez, investment strategy analyst at Wells Fargo Investment Institute, remains favorable on gold "as a potential hedge against concerns around U.S. economics and geopolitics."
However, he suggests investors be patient and buy on pullbacks, "which may provide a more attractive return for the level of risk being taken."
Related content
- Which Stocks Stayed Green as the Market Plummeted?
- What Is the Buffett Indicator?
- Dollar-Cost Averaging Into Stocks: How Does DCA Investing Work?
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market TodayThe AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
-
New Trump Tax Bill: Five Changes Homeowners Need to Know NowTax Changes Trump’s new tax legislation is reshaping how tax breaks for homeowners work.
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market Today
The AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
-
The Smart Way to Retire: 13 Habits to Steal From the WealthyCheck out these practical strategies that anyone can adopt, not just the rich, and get closer to achieving your retirement dreams.
-
Are There Opportunities to Invest in China?Opportunities to invest in China are plentiful and, arguably, shouldn't be ignored in the U.S. Here's where to look.
-
Coulda, Woulda, Shoulda: Are These 5 Stocks Too Overvalued to Buy Now?Investors worried about missing the boat on overvalued stocks need not fret. These five names, while expensive, are still seeing lots of love from analysts.
-
I'm a Financial Planning Pro: Do Your Family a Final Favor and Write Them a Love LetterSpecify your preferences in this personal document that shares your wishes on how you want to be remembered and celebrated. Your family will thank you for easing an emotional time.
-
The Future of Financial Advice Is Human: Gen Z Trusts Advisers, But AI Skills MatterGraduates entering the workforce trust human advisers more than AI tools with their financial planning. But AI can still enhance the client/adviser relationship.
-
President Trump Makes Markets Move Again: Stock Market TodayThe White House is moving ahead with plans to reshape the Federal Reserve and to buy shares in more sectors and stocks.
-
Can President Trump Fire Fed Governor Lisa Cook?Markets hate uncertainty, especially when it comes to monetary policy and interest rates, and questions about the Fed are compounding.
