Trump's Attack on Fed Chair Adds One More Layer of Uncertainty, Gold Soars to New High

Barry Adams
22 Apr, 2025
New York City

Wall Street indexes attempted to rebound following a steep sell-off in the previous session amid lingering trade policy uncertainties compounded by attacks on the Federal Reserve. 

The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.1% following a sharp sell-off in Monday's trading after the Trump administration's attacks unnerved investors. 

Investor anxieties rose after Donald Trump ramped up vicious and personal attacks on Fed Chair Jerome Powell and demanded an immediate rate cut, interfering with the autonomy of the central bank. 

Global investors continue to sell the U.S. dollar-denominated assets after the U.S. president's attack on the independence of the central bank raised the prospects of politicizing the monetary policy. 

Moreover, the lack of progress in negotiations with China, Canada, Mexico, and Japan also weighed on the market sentiment. 

The Trump administration imposed tariffs ranging between 25% and 245% on imports from Europe and Asia, and the import taxes are likely to hit small businesses hard. 

Small businesses in the retail and manufacturing sectors rely on several products and intermediate components from China, Vietnam, and the ASEAN region, and many independent businesses are likely to face bankruptcy in the months ahead. 

Moreover, the U.S. economy is likely to hit a recession in the third quarter as businesses avoid making capital investment decisions and supply chains are reoriented to other markets. 

Gold surged as much as 0.7% and reached a new intraday high of $3,490.11 as investors looked for safety amid growing economic uncertainty. 

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index increased 1.3% to 5,227.86, the Nasdaq Composite edged up 1.6% to 16,126.70, and the Russell 2000 index was up 1.6% to 1,869.51.

The yield on 2-year Treasury notes edged higher to 3.80%, 10-year Treasury notes decreased to 4.38%, and 30-year Treasury bonds declined to 4.86%.

WTI crude oil increased $0.72 to $63.13 a barrel, and natural gas prices edged higher by $0.02 to $3.03 a thermal unit.

Gold decreased by $12.58 to 3,423.56 an ounce, and silver edged down by $0.01 to $32.73.

The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.37 to 98.65, and it traded at the lowest level since April 2022.

 

U.S. Stock Movers 

Nvidia Corp. jumped 1.3% to $98.17 and rebounded from a 5% decline in the previous session amid a looming deadline for shipments to China.  

Moreover, the artificial intelligence chip maker announced a $5.5 billion one-time after the U.S. banned the company from selling previously approved chips to China. 

Home builders were under pressure amid worries that the sharp increase in tariffs on shipments from China  are estimated to increase building material costs between 10% and 20% after May 2. 

Toll Brothers declined 1.9% to $92.13, D.R. Horton decreased 0.4% to $120.76, PulteGroup fell 0.5% to $93.11, and NVR Inc. edged down a fraction to $7,133.84.