Trump's Fed Fight: Stocks Take a Nosedive Amidst Market Chaos

U.S. stocks saw significant declines as President Trump's criticism towards Fed Chair Jerome Powell intensified. Concerns about central bank independence and a deepening Sino-U.S. trade conflict contributed to market uncertainty, impacting leading tech stocks and pushing the S&P 500 towards a potential bear market.

U.S. stocks faced sharp declines Monday after President Donald Trump increased his attacks on Federal Reserve Chair Jerome Powell, raising alarms about the central bank's independence amid a troubling trade war. The tech-heavy Nasdaq was hit hardest, with significant losses among major growth stocks.

The S&P 500 remains 16% below its June 19 peak. If it dips 20% below, it will officially enter a bear market. Trump's criticism of Powell called for immediate interest rate cuts, escalating worries over the Fed's autonomy. "Independent central banks spur economic growth and stability," noted Jed Ellerbroek, a portfolio manager at Argent Capital Management.

The ongoing Sino-U.S. trade tension, amplified by Beijing's warnings, added to the market's woes. Companies tread carefully amid tariff uncertainties, impacting industrial sectors. Notable declines were observed in Tesla and Nvidia shares, influenced by external reports and market expectations.

(With inputs from agencies.)