U.S. stock markets ended the week sharply lower amid rising political tension and renewed investor anxiety, with all major indexes posting significant losses and the closely watched Volatility Index (VIX) soaring 23%.
The Dow Jones Industrial Average dropped 1.23%, shedding 542.4 points to close at 43,588.58. The S&P 500 declined 1.6%, or 101.38 points, ending the session at 6,238.01, while the Nasdaq Composite plunged 2.24%, or 472.32 points, to settle at 20,650.13.
The VIX, often referred to as Wall Street’s “fear gauge,” jumped to 20.55 by 2012 GMT, reflecting heightened market jitters.
The sell-off comes amid escalating tensions between President Donald Trump and Federal Reserve Chair Jerome Powell, following the Fed’s decision earlier in the week to hold interest rates steady. Trump responded with a scathing rebuke of Powell, calling him “TOO LATE, and actually, TOO ANGRY, TOO STUPID, & TOO POLITICAL, to have the job.”
A day later, Trump publicly urged the Fed Board to “assume control” and “do what everyone knows has to be done,” suggesting dissatisfaction with the central bank’s current policy approach.
Adding to the week’s uncertainty, two Fed officials issued statements on Friday defending their votes to cut interest rates at the recent meeting, highlighting internal divisions within the central bank.
In a further shake-up, Federal Reserve Governor Adriana D. Kugler submitted her resignation on Friday, intensifying speculation about the Fed’s future direction.
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