Asian stocks and U.S. stock futures fell on Monday and the dollar plunged, sending gold prices to a new high as concerns about tariffs and President Donald Trump’s public criticism of the Federal Reserve hit market sentiment.
Trump launched a series of attacks on Federal Reserve Chairman Jerome Powell on Thursday, and his team is evaluating whether to fire Powell, a move that would have major implications for the central bank’s independence and global markets.
Most markets were closed on Friday, and some were closed on Monday for the Easter holiday.
S&P 500 futures fell 0.64% and Nasdaq futures fell 0.53%. In Asia, Japan’s Nikkei fell 1% and South Korea’s benchmark index was stable.
“Markets are already on edge due to escalating geopolitical tensions, and now there are growing concerns that Trump’s potential intervention in the Fed could add another layer of uncertainty,” said Charu Chanana, chief investment strategist at Saxo Bank in Singapore.
“Any sign of political pressure on monetary policy could undermine the Fed’s independence and complicate the future path of interest rates at a time when investors are seeking stability amid global turmoil.”
Trump’s tariff moves have roiled financial markets, sparking a sharp sell-off in Treasuries and the dollar, casting new doubts on long-held beliefs in the safe-haven status of U.S. assets.
Trump’s attacks on the Fed have added to shaken confidence in U.S. assets, with the dollar falling sharply against most other currencies. The euro hit a three-year high, while the yen hit a seven-month high.
The Swiss franc rose 0.6% against the dollar, hovering near a 10-year high hit earlier this month.
Chicago Federal Reserve President Austan Goolsbee said on Sunday he hopes the United States will not find itself in an environment where the central bank’s ability to set monetary policy without political pressure is questioned.
In early Asian trading, the benchmark 10-year U.S. Treasury yield rose 3 basis points to 4.358%.
As the U.S. earnings season kicks off, investors’ focus this week will be on the results of tech giant Alphabet, chipmaker Intel and electric car maker Tesla.
The seven super-cap stocks all fell sharply in 2025, with Alphabet down about 20% and Tesla down 40%.
As the Trump administration negotiates with other countries, companies and investors are grappling with the changing tariff landscape.
The United States remains locked in a trade war with China, the world’s second-largest economy, despite Trump suspending high tariffs on some imports.
Trump said on Friday that the United States is in good dialogue with China privately amid the two countries’ trade war. But China’s ambassador to the United States said the United States should show respect before any negotiations begin.
In commodities, gold prices surged more than 1% to hit an all-time high of $3,370.17 an ounce, bringing its gains so far this year to 26%. Driven by safe-haven inflows, gold has continued to hit record highs this year.
