Stock markets started the week starting April 21, 2025, with the Dow Jones losing 971.82 points. UnitedHealth (UNH) continued its plunge on Monday, losing another 6.34% to close at $425.33.
Among the technology stocks, Cisco (CSCO), Apple (AAPL), Amazon (AMZN), and IBM (IBM) declined. White House policies are creating increasingly uncertain prospects ahead. In addition, investors worried about the President’s renewed negative comments about the Federal Reserve Chair Jerome Powell.
Markets do not want the Feds to lose their independence from Washington. That prospect sent the 20+ Year Treasury Bond ETF (TLT) down by 1.75% to a $86.00 close. U.S. debt, U.S. currency (UUP), and the S&P 500 (SPY) are less attractive. The government would cut interest rates to support the economy. However, high tariff rates will weaken economic activity by more.
Investors accumulated Bitcoin (BTC-USD), gold (GDX), gold miners (GDX), and silver (SLV). They continued their selling of U.S. currency. Despite the weak USD, the reserve currency status remains. Still, if trade partners seek an alternative, the U.S. dollar will fall to multi-decade lows.
No Trade Agreements
After the 90-day pause on tariffs announced on “Liberation Day,” the White House did not report any progress. It suggested that discussions with Japan went well. However, Japan, like China, will not likely agree on anything yet. They will wait and see, watching trading volumes closely in the interim instead.