US Stocks Slide, Bond Yields Rise Amid Continued Trump Pressure on Fed

Stocks dropped on Monday, with the Morningstar US Market Index closing down 2.4% after President Donald Trump continued his push to get Federal Reserve Chair Jerome Powell to cut interest rates.

Stocks have whipsawed lower since the beginning of April, as the Trump administration’s new tariff regime has vexed investors. The S&P 500 benchmark index also fell 2.4%, while the technology-heavy Nasdaq ended the day down 2.6%.

Adding to the anxiety is President Trump’s ongoing pressure on the Fed. He has publicly criticized Powell for leaving interest rates at levels he believes are too high. Last week, Trump said Powell’s termination “cannot come fast enough.” On Monday, he added that Powell is a “major loser” who should lower rates “NOW.”

Market watchers worry that an attempt to remove Powell from his post could destabilize the financial system and erode confidence in the United States as a global safe haven.

US Stocks Fall Across the Board, Bond Yields Rise

Losses were spread across every corner of the Morningstar Style Box. Large-cap growth stocks saw the worst damage, with losses of 3%, while large-cap value stocks held up best, with smaller losses of 1.7%. All 11 sectors fell, with technology, energy, and consumer cyclical stocks going furthest, all down about 2.7%. The consumer defensive sector held up best, ending the day down 1.3%. Overall, the US stock market is down 6.9% since the tariff-induced selloff began on April 3.

Meanwhile, the yield on the 10-year US Treasury note rose to 4.41% from 4.33% at Friday’s close. Yields have been rising despite growing expectations that Trump’s trade policies will push the US economy into a recession.