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Major stock indexes are shown declining on monitors at the New York Stock Exchange (NYSE) in New York on April 21. / AFP-Yonhap News

U.S. stock markets fell sharply on April 21 as former President Donald Trump intensified pressure on the Federal Reserve to cut interest rates, raising concerns about the Fed's independence. Meanwhile, the dollar weakened to a three-year low, U.S. Treasury yields rose, and gold prices hit record highs.

Trump wrote on Truth Social that the Fed should deliver a “preemptive” rate cut, warning that if Chair Jerome Powell—whom he dubbed “Mr. Too Late”—fails to act, the economy could slow. He accused Powell of helping “Sleepy Joe Biden” and Kamala Harris during the election season and noted that Europe had already cut rates seven times. Just days earlier, Trump suggested Powell would resign if pressured.

His remarks triggered a negative reaction on Wall Street. The Dow Jones Industrial Average dropped 971.82 points (-2.48%) to 38,170.41. The S&P 500 fell 2.36%, and the Nasdaq lost 2.55%, led by sharp declines in major tech stocks. Nvidia fell 4.5%, Tesla dropped 5.8%, and Amazon and Meta slid over 3%.

As investors fled dollar-denominated assets, the dollar index fell to 97.92—its lowest since March 2022. Against the euro, the dollar hit a 3.5-year low; against the yen, a seven-month low. The 10-year Treasury yield rose to 4.41%, reflecting a drop in bond prices.

In contrast, gold surged as a safe haven, with spot prices crossing $3,442 per ounce during the session. June futures closed at $3,425.30, up 2.9%, both new records.

Oil prices plunged on recession fears and signs of rising supply. West Texas Intermediate for May delivery fell 2.47% to $63.08 per barrel.