Stocks looked set to fall on Monday, as investors fretted about trade tensions and fears that U.S. President Donald Trump could fire Federal Reserve Chair Jerome Powell in a bid to force the central bank to cut interest rates.
The three blue-chip U.S. indexes were set to open lower. Futures tracking the Dow Jones Industrial Average fell 349 points, 0.9%. S&P 500 futures slipped 1%, and Nasdaq 100 futures dropped 1.1%.
White House economic advisor Kevin Hassett said Friday that the Trump administration was looking into whether it can fire Powell, a day after the President took to social media to slam the Fed chair.
Uncertainty about the central bank’s role could be another drag on U.S. stocks, which have plummeted this month amid worries that Trump’s tariff plans could fuel a flare-up in inflation and hit growth.
China’s Ministry of Commerce said Monday that it respects all countries trying to resolve their differences with the U.S. but “firmly opposes any party reaching a deal at the expense of China’s interests,” adding that it would hit back at any countries with countermeasures.
Trump’s attacks on the Fed were also moving other assets. The WSJ Dollar Index, which tracks the buck’s strength against 16 other currencies, dropped 0.9%, putting it close to its lowest level of the past year. Gold futures climbed 2.3% to $3,406 per Troy ounce, meaning the yellow metal hit another record high.
The yield on the 10-year U.S. Treasury note ticked up 4 basis points to 4.366%. Brent international oil prices dropped 1.5% to under $67 a barrel and West Texas Intermediate prices fell 1.6% to less than $64 a barrel, with traders worried that Trump’s tariffs could weigh on global demand for crude.