US stocks fell sharply Monday as President Trump hurled more social media insults towards Fed Chair Jerome Powell, sparking concerns of Fed independence at a time when markets are still reacting to the president's whipsawing tariff's policy.

The S&P 500 (^GSPC) was down over 2%, while the tech-heavy Nasdaq (IXIC) sank 2.6%, leading the way down. The Dow Jones Industrial Average (^DJI) dropped 1.9%, over 700 points.

As Yahoo Finance's Josh Schafer wrote in our preview of the week, the stock market remains largely at the mercy of Trump's tariffs. Different headlines and shifts in narratives have driven big market swings over the past several weeks, with all three indexes down over 5% since Trump's "Liberation Day" event.

Meanwhile, are grappling with a growing concern: Trump's bluster around removing Fed Chair Jerome Powell. Trump has repeatedly criticized Powell for allegedly keeping interest rates too high, with his latest insult posted on Monday morning, warning that the economy could slow "unless Mr. Too Late, a major loser, lowers interest rates, NOW."

Trump's new focus on Powell comes in the days after the Fed chief delivered a stark warning on the potential effects of tariffs on the economy.

Read more: The latest on Trump's tariffs

The "sell-America" trade gathered more steam Monday, as the US dollar (DX=F) index eyed its lowest level since 2022 and the benchmark 10-year Treasury yield (^TNX) rose to near 4.34%.

Meanwhile, earnings season continues, with this week looming as pivotal. Two of the "Magnificent Seven" take the spotlight of some 120 S&P 500 companies reporting this week: Elon Musk's Tesla (TSLA) and Alphabet (GOOG, GOOGL). Both stocks are emblematic of this year's shift away from the high-flying tech trade of recent years. Alphabet stock is down nearly 20% so far in 2025, while Tesla has lost a whopping 40%. 

Tesla shares lost 4% in early trading on Monday. Another Magnificent Seven peer, Nvidia (NVDA), continued a recent slide, down 3% as China looks to domestic alternatives amid new US curbs on Nvidia's chip sales.

Elsewhere, bitcoin (BTC-USD) surged to its highest level since Trump’s “Liberation Day” tariff announcements. Gold (GC=F) also reached another record, crossing the $3,400 level for the first time.