U.S. stocks dropped sharply on Monday, continuing a volatile stretch for Wall Street as geopolitical tensions, earnings anxiety, and Fed uncertainty collide.
The tech-heavy Nasdaq led the losses, down almost 2.2%, with the S&P 500 off 1.7% and the Dow Jones Industrial Average falling 604 points, or 1.5%. The VIX jumped almost 10% as gold surged to a record $3,434 per ounce.
Nvidia stock dropped almost 5% after new White House export restrictions on its AI chips appeared to hand a competitive edge to Chinese rivals like Huawei, which reportedly plans to ship its own advanced chip to local customers as soon as next month. Tesla (TSLA) stock fell more than 6% ahead of Tuesday’s earnings, as investors brace for lackluster results and look for any sign of stabilization in demand or margins.
Meanwhile, the U.S. dollar fell to a three-year low after President Donald Trump last week fiercely criticized Federal Reserve Chair Jerome Powell and called for his termination. The move deepened investor fears over the central bank’s independence and added to the broader sense of policy unpredictability driving market volatility. It’s no mystery: Long-term investors and operators alike know that trust and stability are core to functioning markets. When leadership injects chaos or undermines institutional credibility, the costs show up everywhere — from higher borrowing rates to delayed investment decisions.
With more than 100 companies reporting earnings this week — including Tesla, Google parent Alphabet (GOOGL), IBM (IBM), Boeing (BA), and Procter & Gamble (PG) — traders are looking for any signs of resilience, or at least clarity, as a chaotic second quarter kicks into gear.
Nvidia (NVDA) stock was down after reports that Huawei will begin mass shipments of a new AI chip to Chinese customers as soon as next month. The move highlights Beijing’s push to reduce reliance on U.S. technology — and deepens investor anxiety around Nvidia’s access to the massive China market after the White House imposed new rules on the company’s chip sales.
It’s been a whiplash month for equities, with intraday swings as large as 5% and every major index well off its pre-“Liberation Day” levels. The coming week may determine whether that trend deepens — or finally breaks.
Earnings from tech giants including Tesla and Google will be scrutinized not just for growth but for signs of stability in a market that’s grown more erratic by the day. With more than 100 companies reporting this week, the next few days could set the tone for the rest of the second quarter.
