FX.co ★ US Stocks Kick Off the Week in The Red

U.S. stocks commenced the week on a negative note, with the S&P 500 declining by 1.1%, the Nasdaq dropping 1.5%, and the Dow Jones slipping over 370 points. This downturn occurred as traders returned from an extended weekend, facing renewed apprehensions regarding the Federal Reserve's independence. Market sentiment was further dampened when Kevin Hassett, Director of the National Economic Council, stated that President Trump is contemplating the dismissal of Fed Chair Jerome Powell. These comments followed a previous social media message from Trump asserting that Powell's removal "cannot come fast enough." Such statements have heightened concerns over the potential politicization of U.S. monetary policy and the possible undermining of the Federal Reserve's credibility. Concurrently, investors remain vigilant about ongoing trade tensions, as China has cautioned countries about reaching agreements with the U.S. that could be detrimental to its interests. Additionally, investors are bracing for a significant week of corporate earnings, featuring major companies such as Alphabet, Tesla, IBM, and Boeing. Technology and consumer discretionary sectors experienced the most considerable declines.