NEW YORK (AP) 鈥 U.S. stocks are tumbling as worries about President Donald Trump鈥檚 trade war and his criticism of the Federal Reserve cause investors to pull further from the United States. The S&P 500 fell 2.6% Monday and was 16% below its record set two months ago. The Dow Jones Industrial Average dropped 1,000 points, and the Nasdaq composite sank 2.9%. Big Tech stocks led the way lower ahead of earnings reports coming this week from Tesla and others. Perhaps more worryingly, the value of the U.S. dollar also sank as a retreat continues from U.S. markets. The yield on the 10-year Treasury briefly topped 4.40% before regressing.
THIS IS A BREAKING NEWS UPDATE. AP鈥檚 earlier story follows below.
NEW YORK (AP) 鈥 U.S. stocks are tumbling Monday as worries about and his criticism of the Federal Reserve cause investors pull further from the United States.
The S&P 500 was 2.1% lower in morning trading and nearly 16% below its record set two months ago. The Dow Jones Industrial Average was down 726 points, or 1.9%, as of 10:30 a.m. Eastern time, while losses for Tesla and other Big Tech stocks had the Nasdaq composite down a market-leading 2.6%.
Perhaps more worryingly, the also sank as a retreat continues from U.S. markets. It鈥檚 an unusual move because the dollar has historically strengthened during past episodes of nervousness. But this time around, it鈥檚 policies directly from Washington that are causing the fear and potentially weakening the dollar's reputation as a pillar of the global economy and one of the safest possible investments.
Trump continued his tough talk on global trade over the weekend, even as economists and investors continue to say his stiff proposed tariffs could cause if they鈥檙e not rolled back. U.S. talks last week with Japan have so far failed to reach a deal that could lower tariffs and help protect the economy, and they're seen as a 鈥渢est case,鈥 according to Thierry Wizman, a strategist at Macquarie.
鈥淭he golden rule of negotiating and success: He who has the gold makes the rules,鈥 Trump said in all capitalized letters on his Truth Social Network over the weekend. He also said that 鈥渢he businessmen who criticize tariffs are bad at business, but really bad at politics,鈥 likewise in all caps.
Trump has recently focused more on China, the world鈥檚 second-largest economy, which upped its own rhetoric against the world鈥檚 largest economy. China on Monday against making trade deals with the United States 鈥渁t the expense of China鈥檚 interest鈥 as Japan, South Korea and others try to negotiate agreements.
鈥淚f this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner,鈥 China鈥檚 Commerce Ministry said in a statement.
Also hanging over the market are . Trump last week for not cutting interest rates sooner to help give the economy more juice.
The Fed has been because it does not want to allow to reaccelerate after it has slowed nearly all the way down to its 2% goal from more than 9% three years ago.
Trump about a slowing for the U.S. economy that could be coming unless 鈥淢r. Too Late, a major loser, lowers interest rates.鈥
A move to fire Powell would likely send another bolt of fear through financial markets. While investors always love lower interest rates, because they boost prices for stocks and other investments, the larger worry would be that a less independent Fed would be less effective at keeping inflation under control in the long run. Such a move would further weaken, if not kill, the United States鈥 reputation as the world鈥檚 safest place to keep cash.
On Wall Street, several Big Tech stocks helped lead indexes lower due later this week.
Tesla sank 6.7%, for example. The electric vehicle鈥檚 stock came into Monday roughly 50% below its record set in December on criticism that its stock price had gone too high and that its with Elon Musk, who鈥檚 leading the U.S. .
On the winning side of Wall Street were Discover Financial Services and Capital One Financial, which jumped after the .
Discover rallied 3%, and Capital One rose 0.9%.
In the bond market, shorter-term Treasury yields fell as investors keep alive hopes that the Fed may cut its main overnight interest rate later this year in order to support the economy.
Longer-term yields swiveled up and down, though, as doubts in the global economy.
The yield on the 10-year Treasury topped 4.40% in the morning, up from 4.34% at the end of last week and from just about 4% earlier this month. That鈥檚 a substantial move for the bond market. But it later regressed back to 4.34%.
The U.S. dollar鈥檚 value, meanwhile, fell against the euro, Japanese yen, the Swiss franc and other currencies.
In stock markets abroad, Tokyo鈥檚 Nikkei 225 fell 1.3%. Indexes fared better in Seoul, where stocks rose 0.2%, and in Shanghai, which saw a 0.4% gain.
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AP Business Writer Elaine Kurtenbach contributed.
