Stocks Drop Sharply Amid Fed Concerns and Tech Selloff
Stocks fell sharply today as the financial markets reacted to comments from the Federal Reserve. The Dow plunged below 40,000, and the Nasdaq dropped more than 3%. At a speaking engagement with the Economic Club of Chicago, Fed Chair Jerome Powell raised alarms about President Trump’s tariff strategy, indicating that these tariffs could fuel inflation and “move us further away from our goals.” Powell also stated that the central bank is prepared to wait for “greater clarity” before altering its policies, providing little direction regarding future interest rate adjustments. Following his remarks, all three major indexes experienced a deeper decline.
In addition to the Fed’s influence, Wall Street faced a tech sector selloff, notably after Nvidia (NVDA) reported $5.5 billion in tariff-related charges. Furthermore, the New York Times revealed that the Trump administration is scrutinizing DeepSeek, a Chinese artificial intelligence (AI) startup using Nvidia chips.
Continue reading for more insights on today’s market, including:
- Pre-earnings outlook for UnitedHealthcare Stock.
- Two gold stocks capitalizing on the record surge in bullion prices.
- Market reaction to chipmaker’s disappointing outlook; United Airlines earnings; and Lyft’s expansion into Europe.
Five Key Market Developments
- President Trump enacted an executive order aimed at reducing prescription drug prices for many Americans, including those on Medicare. (Wall Street Journal)
- OpenAI is reportedly negotiating to acquire Windsurf, an AI coding assistance tool, for approximately $3 billion. (CNBC)
- Details behind this chipmaker’s grim sales outlook.
- Options traders focused on United Airlines Stock after earnings were disclosed.
- Ridesharing leader Lyft revealed its first acquisition in Europe.
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Gold Surges to New All-Time High
Oil prices ended the day higher as new U.S. sanctions were imposed on Chinese importers of Iranian oil, coinciding with President Trump’s efforts to curtail Iranian oil exports. May-dated West Texas Intermediate (WTI) crude gained $1.18, or 1.8%, closing at $65.85 per barrel.
Meanwhile, gold prices soared, reaching a new record high and marking the largest daily gain since April 2020. Traders and central banks worldwide have been stockpiling this safe-haven asset due to ongoing tariff concerns. June-dated gold increased by 3.7% to settle at $3,326.60 per ounce.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
