Dollar Hits 3-Year Low as Stocks Sink & Gold Shines

Markets Slide as Trump Targets Fed, Dollar Sinks & Gold Hits Record

Markets took a beating on Monday, April 21, 2025, after fresh verbal attacks by President Donald Trump on Federal Reserve Chair Jerome Powell rattled investor confidence. Alongside persistent fears surrounding aggressive U.S. tariff policies, the global economy is grappling with a perfect storm of trade uncertainty, central bank pressure, and flight-to-safety behavior.

The S&P 500 dropped 2.4%, the Nasdaq Composite shed 2.6%, and the Dow Jones Industrial Average plunged nearly 1,000 points, or 2.5%. These losses erased much of the previous week’s gains and highlighted renewed volatility in equity markets amid political and economic stress.

Trump’s Powell Criticism Rocks the Fed’s Independence

Investor nerves were frayed after President Trump launched yet another public attack on Fed Chair Jerome Powell, calling him a “major loser” and urging the central bank to lower interest rates “immediately.” The harsh words followed Powell’s recent remarks that warned of rising inflation and slowing growth due to the administration’s expansive tariff regime, complicating the Fed’s efforts to manage monetary policy effectively.

The concern goes beyond mere rhetoric. White House economic advisor Kevin Hassett confirmed that the president is actively exploring ways to remove Powell before his term ends next year. Such a move would represent an unprecedented challenge to the independence of the Federal Reserve, unsettling both domestic and international investors.

Dollar Collapses to 3-Year Low as Global Trust Wanes

The U.S. Dollar Index (DXY) dropped sharply to 98.35 its lowest level in over three years. It had closed at 99.38 last Friday but continued to slide on fears that Trump’s escalating confrontation with the Fed and trade partners could destabilize the economy.

With central bank independence under threat and protectionist policies souring trade relations, investors have been rapidly exiting dollar-denominated assets. The dollar’s weakness has also reignited interest in traditional safe havens like gold and Treasuries.

Gold Shines Bright: Safe Haven Demand Surges

Gold soared to fresh all-time highs, spiking 3.2% to reach around $3,435 per ounce in late trading. Earlier in the day, it briefly topped $3,440. With geopolitical tensions rising, trade negotiations uncertain, and inflation expectations climbing, investors have turned to the yellow metal as a store of value and hedge against volatility.

Analysts from Bloomberg and Kitco noted that gold’s rally could continue if the Fed appears compromised or if inflation expectations get anchored higher. “There’s no more trusted fallback than gold when the system starts to look shaky,” one analyst remarked.

10-Year Treasury Yields Jump as Bond Prices Tumble

The yield on the benchmark 10-year Treasury note rose to 4.42%, up from 4.33% last week. When bond prices fall, yields rise typically a sign that investors are either rotating into riskier assets or, in this case, dumping bonds in anticipation of rising inflation and uncertainty around Fed credibility.

Some market strategists are warning of a liquidity crunch if the trend continues, particularly if global buyers begin to pull back from U.S. government debt.

Tech Tumbles: Tesla, Nvidia, and Super Micro Slide

Tech stocks, especially those in the mega-cap and semiconductor space, were hit hard. Tesla (TSLA) led the decline, slumping nearly 6% ahead of its quarterly earnings report scheduled for Tuesday.

Chipmakers Nvidia (NVDA) and Broadcom (AVGO) fell 4.5% and 3%, respectively, amid concerns that AI and EV demand might slow in a stagflationary environment. Other notable losers included:

• Apple (AAPL), Alphabet (GOOG), and Microsoft (MSFT)  all down around 2%
• Meta Platforms (META) and Amazon (AMZN) dropped about 3%
• Marvell Technology (MRVL), Palo Alto Networks (PANW), and Applovin (APP)  each lost over 4%
• Super Micro Computer (SMCI)  sank over 6% 

The Philadelphia Semiconductor Index has been among the worst performers this month, reflecting sector-wide weakness due to both macro and inventory overhangs.

A Rare Bright Spot: Netflix Pops on Earnings

Amid the sea of red, Netflix (NFLX) shares bucked the trend, rising 1.5%. The streaming giant impressed with its quarterly earnings last Thursday, beating analyst expectations on both revenue and subscriber growth. Several brokerages including Morgan Stanley and JPMorgan upgraded their price targets for the stock, citing improved margins and international growth.

Oil Stocks Drop with Crude Prices

Crude oil prices declined on Monday, dragging energy stocks lower. West Texas Intermediate (WTI) crude slipped 2% to $63.40 per barrel, on fears that global demand could slow under the weight of tightening financial conditions and trade disruptions.

Key movers in energy:

• Chevron (CVX) fell 3%
• Halliburton (HAL) and Baker Hughes (BKR) each declined nearly 3% 

Oil traders are closely watching U.S.-China developments as new tariffs could potentially reduce industrial activity and transport demand in both nations.

Bitcoin Moves in Choppy Trade

Bitcoin (BTC) experienced sharp fluctuations, trading at $87,100 by late Monday. It had touched a low of $84,600 overnight before rebounding slightly. Earlier, it had tested the $88,500 mark. Volatility in traditional markets has spilled into crypto, with some investors using Bitcoin as a hedge, while others are taking profits amid broader risk-off sentiment.

Final Thoughts

April 21 delivered another turbulent session across global financial markets. With President Trump doubling down on his criticism of Jerome Powell and China promising retaliation against U.S.-aligned trade partners, market participants are increasingly on edge. The dollar’s slump, soaring gold prices, and heavy tech losses paint a picture of investor anxiety, compounded by doubts over the Federal Reserve’s autonomy.

All eyes now turn to Powell’s next move, the upcoming earnings season, and potential central bank interventions. In this climate, safe-haven assets like gold and possibly Bitcoin may continue to draw inflows while equities struggle for direction.

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