Major indexes opened lower as concerns grew about Federal Reserve independence following news suggesting U.S. President Trump may replace Fed Chair Powell. Traders are uneasy due to ongoing trade war tensions. Dow Jones fell nearly 500 points, around 1.3%, while Nasdaq dropped by 1.7% and the S&P 500 was down 1.4%. The Philadelphia Semiconductor Index dropped over 2%.
Global markets were volatile amid speculation over potential political interference in U.S. monetary policy, causing U.S. stock futures and the dollar to fall, while safe-haven assets like gold and the yen soared. The S&P 500 futures were down 1.3%, and the dollar index hit a 15-month low.
Spot gold surged past $3,390 per ounce, reaching a new high, while international oil prices fell more than 2%, with Brent crude dropping below $67 per barrel. Analysts and legal experts debate the president's ability to dismiss Powell easily.
In individual stocks, Tesla (TSLA, Financial) faced a pre-market drop of 5.06%, with market focus on upcoming earnings and its capacity to counter competitive pressures. Alphabet (GOOGL) and Boeing (BA) also experienced early losses amid industry challenges and broader economic worries.
