Stock traders were in shock after reports emerged that Federal Reserve Chair Jerome Powell is under criminal investigation. The Department of Justice probe—though still in its early stages—triggered a sharp sell-off across major indexes. 😱📉
This week, the S&P 500 slid 2.3% and the Nasdaq fell nearly 3%, while the CBOE Volatility Index spiked, reflecting a surge in risk aversion. Bonds also saw jitters, pushing yields higher.
Why it matters: Powell’s credibility anchors global markets. If doubts linger over his leadership, everything from mortgage rates to corporate borrowing costs could face new twists. 🌐💸
What’s next: Analysts say we may need to wait for an official Fed statement or DOJ update before calm returns. Until then, expect choppy trading and fast-changing headlines.
For young investors: diversification is key. Keep an eye on safe havens, set clear goals, and stay informed. After all, in finance, the only constant is change. 🚀
Reference(s):
Powell under criminal investigation, sparking turbulence in US markets
cgtn.com
