LIVE MARKETS-US stocks broadly red as Trump pummels Powell, traders wait for trade deals

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U.S. STOCKS BROADLY RED AS TRUMP PUMMELS POWELL, TRADERS WAIT FOR TRADE DEALS

Threats by U.S. President Donald Trump to replace Federal Reserve Chair Jerome Powell for being "slow" to cut interest rates, along with the absence so far of deals with trading counterparties sent stocks broadly lower on Monday.

Trump amped up pressure on Powell on Monday, saying in a social media post that the economy may face a slowdown due to the U.S. central bank keeping interest rates on hold.

Trump claims that falling prices and "virtually No Inflation" justify rate cuts and has implied that Powell is acting politically. White House economic adviser Kevin Hassett on Friday said Trump and his team were continuing to study if they could fire Powell.

Traders worry that removing Powell would threaten the Fed’s independence and could lead to higher inflation. It's also coming with fears over a renewed surge in prices due to tariffs, which traders also worry will slow economic growth.

The Trump administration is in talks with countries including India and Japan over trade terms and investors are closing watching for deals that could avert higher tariffs and possibly boost market sentiment, though so far none have been announced.

“I think that we all go home at night hoping that we wake up in the morning with some announcement of some relief on these tariffs,” said Eric Kuby, chief investment officer at North Star Investment Management Corporation in Chicago.

U.S. Vice President JD Vance and Indian Prime Minister Narendra Modi welcomed significant progress in talks for an early trade deal between the two countries, their offices said on Monday.

Trump is set to meet with representatives from major retailers on Monday afternoon to discuss the effects of broad-based tariffs on their businesses, a White House official said.

The Nasdaq Composite .IXIC was the worst performing major index, dropping 2.6%. The S&P 500 .SPX fell 2.4% and Dow Jones Industrial Average .DJI dropped 2.5%. All S&P 500 subsectors ended down with consumer discretionary .SPLRCD, the worst performer, dropping 2.9%.

Here is Monday's closing market snapshot:

(Karen Brettell, Lewis Krauskopf)

FOR MONDAY'S EARLIER LIVE MARKETS POSTS:

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