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Strategist: COVID-19 pandemic scenario appears to be repeating itself

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2025-04-22 00:42:24
On April 22nd, the US stock market fell again on Monday, with the Dow closing down 2.48%, the S & P 500 index falling 2.36%, and the Nasdaq index falling 2.55%. The main reason for the sharp decline in US stocks was that US President Donald Trump stepped up his attacks on Federal Reserve Chairperson Jay Powell, raising questions about the independence of the Federal Reserve. At the same time, traders saw little sign of progress in global trade talks.
As the threat intensified, the dollar came under pressure, hitting a three-year low. Gold, meanwhile, surged to a record high above $3,400 an ounce. Michael Green, chief strategist at Simplify Asset Management, noted: "What is becoming clear is the deep conflict between the Federal Reserve and the US government. We are effectively repeating what happened during the COVID-19 pandemic, and this uncertainty has materially disrupted trade... Most expect some form of stimulus to eventually be introduced to offset the impact of tariffs."
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