This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
Market volatility may arise from U.S. President Donald Trump’s intention to interfere in the Federal Reserve, which he stated to reporters on Friday. Due to the markets being closed for the Good Friday holiday, that did not occur.
Trading started up again on Monday. Trump has also attacked the central bank and, more specifically, Fed Chair Powell, calling him “a major loser” and “Mr. Too Late” for failing to lower interest rates. Powell was appointed to the top position of the Federal Reserve by Trump during his first term as president in 2017.
Investors dumped their equities since there was no market shutdown to protect them from Trump’s threats. All major U.S. indices sank, driven down by strong drops in the “Magnificent Seven” group of equities.
Gold prices reached a record high, and the U.S. dollar fell to a three-year low, indicating that international investors are shifting their money to safer assets protected from Trump and losing faith in the American economy.
What To Note Today
Trump Ramps Up Pressure on Powell
President Trump intensified criticism of Fed Chair Jerome Powell, demanding immediate rate cuts to avoid an economic slowdown. Trump called Powell “Mr. Too Late” on Truth Social, continuing a pattern of urging lower interest rates.
Markets Slide, Dollar Dips, Gold Surges
U.S. stocks tumbled on Monday, with the S&P 500, Dow, and Nasdaq all dropping by more than 2%. The U.S. dollar hit its lowest level since March 2022, while gold soared to a new record of $3,452.30/oz. Asian markets opened mixed on Tuesday.
Tesla Stock Falls Ahead of Q1 Earnings
Tesla shares dropped nearly 6% ahead of its quarterly earnings release. The stock is down 44% year-to-date, with some investors raising concerns over the impact of Elon Musk’s political actions on the brand.
India, U.S. Signal Trade Deal Progress
Indian Prime Minister Modi and U.S. Vice President JD Vance expressed optimism about finalizing a bilateral trade deal. Both sides confirmed progress and readiness to advance negotiations for a mutual agreement.
Nomura Acquires Macquarie Assets for $1.8B
Nomura will acquire U.S. and European public asset management units of Macquarie in a $1.8 billion cash deal, expected to close by year-end pending regulatory approval.
Trump-Powell Rift Could Shake Markets
Markets could react sharply if Trump moves against Powell, warns Evercore ISI’s Krishna Guha. While Powell maintains he can’t be legally removed, political pressure remains a concern.
Global Central Banks Juggle Currency Risks
The weakening U.S. dollar is prompting global central banks, particularly in Asia, to exercise caution in managing their currency strength. While stronger currencies help curb inflation, they risk hurting exports and prompting capital outflows.
