Market Turmoil: Trump's Fed Criticism Rattles Stocks

U.S. stocks experienced significant losses as President Trump's critiques of Federal Reserve Chair Jerome Powell intensified, raising concerns over the Fed's independence amid the ongoing trade war. The market fell sharply with tech-heavy sectors bearing the brunt, sparking fears of a potential bear market.

U.S. stocks took a plunge on Monday as President Donald Trump heightened his criticism of Federal Reserve Chair Jerome Powell, stoking fears about the central bank's autonomy. The negative sentiment among investors was further fueled by the ongoing trade war, leading to a marked downturn in the markets.

The major indices saw a substantial dip, with the S&P 500 nearing bear market territory. Trump's public call for Powell to lower interest rates in a social media post raised eyebrows and prompted concerns about potential political influence on the Fed's decision-making process.

The trade tensions between the U.S. and China escalated, with Beijing's warning against countries favoring U.S. deals adding to the friction. The market's reaction was swift, with the technology and consumer discretionary sectors suffering significant losses as uncertainties around tariffs and economic growth loomed large.

(With inputs from agencies.)