US stocks set to rebound after losses, Gold rises above record $3,500
US stock futures have risen after the all major indexes ended 2% lower on Monday following Donald Trump's criticism of the Federal Reserve Chair.
US stock index futures rebounded on Tuesday following losses incurred the day before after President Donald Trump's criticism of Federal Reserve Chair Jerome Powell spooked investors, reported Bloomberg. At the same time Gold surged past $3,500 an ounce for the first time.
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On Monday, all three major indexes ended 2 per cent lower after Donald Trump doubled down on his attacks on Powell for not cutting interest rates.
However, S&P 500 futures rose 0.9 per cent, amid speculation that the White House could replace the Federal Reserve Chair. The dollar and Treasuries also steadied, as reported by Reuters.
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Other major index futures also increased, such as the Nasdaq 100 by 0.9 per cent and the Dow Jones Industrial Average by 0.8 per cent.Gold gained as much as 2.2 per cent on Tuesday to briefly touch $3,500, before easing as traders took profits. Gold prices have increased rapidly in 2025 due to trade tensions affecting markets, especially after US President Donald Trump took office for the second time and introduced several tariffs, increasing uncertainty among traders.
Donald Trump on Jerome Powell
Markets have been uneasy due to the turmoil unleashed by President Donald Trump's retaliatory tariffs and his current friction with the Federal Reserve Chair Jerome Powell.
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“With increasing rhetoric from the administration admonishing the Fed to cut rates and the markets entertaining intensifying discussions about the possibility of replacing the Fed chair, we don’t expect a rush back into the market from abroad,” said John Velis, a strategist at Bank of New York Mellon, told Bloomberg.
Last week, in a post on TruthSocial, Trump claimed Powell’s “termination cannot come fast enough,” sparking fears he might attempt to remove the Federal Reserve Chair.
Trump also told reporters in the Oval Office, as quoted by CNN, “If I want him out, he’ll be out of there real fast, believe me. I’m not happy with him.”
