U.S. stock indexes closed sharply lower on Monday, snapping the holiday lull as President Trump’s renewed attacks on Fed Chair Jerome Powell and tariff uncertainty reignited volatility.

Market Overview

S&P 500: –2.4%

Dow Jones: –2.5% (–971 points)

Nasdaq Composite: –2.6%

Volume: Thin trading as many global markets remained on Easter holiday.

Volatility Spike

VIX Index: +14% to around 34 (long?term median ≈17.6)

Elevated investor fears reflect worries over policy credibility and trade wars.

Policy Drivers

Tariff Negotiations:

Trump officials aim to seal multiple deals during the 90?day pause on new duties.

“April 2 was the high?water mark for tariffs,” say Vital Knowledge strategists, expecting rates to ease thereafter.

Fed Independence Concerns:

White House adviser Kevin Hassett confirmed studies on firing Powell.

Trump’s Truth Social posts demand “preemptive” rate cuts, despite Powell’s warning that tariffs may stoke inflation.

Tech Earnings in Focus

Alphabet (GOOGL) and Tesla (TSLA) kick off Q1 reporting this week.

Barclays trimmed TSLA’s price target to $275 from $325, citing “confusing visibility” ahead of Tuesday’s results.

Largest Market Movers
Track real?time session leaders and laggards via the? Market Biggest Gainers Market Overview APIfrom Financial Modeling Prep.

With policy clashes and trade tension front and center, investors should brace for ongoing choppiness—next indicators to watch include tariff updates and Fed commentary for clues on market direction.