Monday saw major declines in several of the largest US stocks on the New York Stock Exchange. The leading index S & P 500 plunged 2.36 percent - while the Nasdaq Composite, which includes the largest technology stocks, ended with a decline of 2.55 percent. The Dow Jones Industrial Average fell 2.48 percent.
Electric car manufacturer Tesla, which will report earnings later in the week, led the decline with a plunge of 5.96 percent. Chip giant Nvidia's share price was 4.51 percent down when the stock exchange closed.
The major declines come after a Monday when President Donald Trump again criticized the head of the US Federal Reserve, Jerome Powell. This has raised concerns about the central bank's independence and shaken investors in the midst of an escalating trade war. The US and China are locked in a stubborn trade war, with tariffs on each other's goods reaching over 100 percent. in a short time. The US tariff on the rest of the world's goods is at least 10 percent.
Jerome Powell said last week that the high tariffs that Trump has imposed on a number of countries have increased the risk of higher unemployment and are likely to cause higher inflation and slower growth. However, Trump has no intention of changing his economic policy.
The president wrote on his social media, Truth Social, on Monday that the US central bank chief is a "huge loser". According to Trump, there is "virtually no inflation", he wrote on Truth Social. The US president warns of an economic slowdown unless interest rates are lowered. Trump has repeatedly called on the head of the US central bank to lower interest rates.
jel /ritzau/
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