Stocks signal slump at open

U.S. stocks were headed to a share loss at the open as traders fretted about tariffs, rising interest rates and if Jerome Powell will be forced out as chairman of the Federal Reserve. 

At 8:30 a.m. ET, an hour before trading opens on U.S. exchanges, futures trading in the major averages were all lower.

💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💰💵

The Standard & Poor’s 500 index was looking at a 1.2% decline at the open. The Nasdaq Composite Index was looking at a 1.5% decline. The Dow Jones industrials were off more nearly 400 points.

The market’s decline starts a week in which includes important earnings, including Tesla  (TSLA)  on Tuesday, IBM  (IBM)  and Boeing  (BA)  on Wednesday and Google-parent Alphabet  (GOOGL)  after Thursday’s close. 

Tesla shares were off more than 4% premarket on Monday. 

Crypto-sensitive stocks like MicroStrategy  (MSTR)  were higher as Bitcoin moved to $87,050, its highest level since March.

Stock slide continues 

The market has been slumping since President Trump unveiled his tariff plans on April 2. The immediate announcement has been dialed back for 90 days, but base tariff rates are now at 10%, the highest in a hundred years. 

Going into Monday, the S&P 500 was down 10.2% on the year. The Nasdaq had fallen 15.7%, and the Dow was off 8%.

The uncertainty this year has caused gold prices to soar well above $3,000 per troy ounce. The price on Monday was at $3,418 an ounce, up $90 from Thursday. 

Related: Wall Street icon predicts surprise earnings week winner

The battle over the Fed heats up

Matters have been complicated by the president’s attacks on Fed Chairman Powell. Last week, the President said Powell can’t be terminated fast enough. Trump appointed Powell to the Fed in his first term. 

The president believes the Fed should be cutting rates aggressively. The Fed’s key federal funds rate is now at 4.25% to 4.5%.

Moreover, the administration is chafing at the idea of a Federal Reserve that it can’t control.

Trump advisor Kevin Hassett said Friday the administration has been studying if it can fire Powell, whose term as chairman doesn’t expire until Spring 2026. Powell has argued he can’t be fired except for cause. 

In addition, the administration has been floating Kevin Warsh, a former Fed governor, as a possible successor. 

Related: This week will signal whether tariffs are hurting

Meanwhile, Catholics were mourning the passing of Pope Francis, whose death at 88 was announced early Monday.

Stock markets in many countries, including European countries, Brazil and Hong Kong, were closed after Easter Sunday. 

Related: Veteran fund manager unveils eye-popping S&P 500 forecast

#Stocks #signal #slump #open