Markets Fall as Trump Pressures Fed for Rate Cuts

? Markets Fall as Trump Pressures Fed for Rate Cuts

U.S. stocks closed sharply lower Monday after former President Donald Trump renewed his call for the Federal Reserve to cut interest rates immediately, warning that the U.S. economy could slow without action.

• Nasdaq Composite fell 2.6% to 15,870.90

• S&P 500 dropped 2.4% to 5,158.20

• Dow Jones slipped 2.5% to 38,170.41

All 11 S&P 500 sectors ended in the red, with consumer discretionary and technology leading the losses.

? Treasury Yields were mixed:

• 10-year yield rose 8.1 bps to 4.41%

• 2-year yield fell 4 bps to 3.76%

?️ Crude Oil (WTI) for June delivery declined 2% to $62.75 per barrel.

?️ Trump vs. The Fed

Trump warned that Fed Chair Jerome Powell needs to act quickly to avoid an economic slowdown. He also reiterated that Powell’s dismissal “cannot come fast enough.”
Analysts at Macquarie cautioned that a September rate hike remains possible if the Fed decides to push back against political pressure or persistent inflation expectations.

? Market Breadth & Volume

• NYSE: Decliners beat advancers 4.76 to 1

• Nasdaq: Decliners led 2.63 to 1

• S&P 500: 1 new 52-week high, 9 new lows

• Nasdaq: 28 new highs, 184 new lows

• Volume: 13.89 billion shares traded vs. 20-day average of 18.87 billion

? Notable Movers

• Discover Financial (DFS): +3.6%

  • Regulators concluded investigations into card product misclassification. DFS fined $250M.

• Fidelity National Info (FIS): +2.4%

  • Upgraded to “Buy” by Citigroup and TD Cowen

• Achieve Life Sciences: +13%

  • Plans FDA filing for its smoking cessation drug, cytisinicline, in June.

• Blackstone (BX): -7.8%

  • Downgraded by Goldman Sachs and Deutsche Bank

? Commodities

• Gold: +3.1% to $3,431.90/oz

• Silver: +0.7% to $32.68/oz