The Dow Jones Industrial Average declined 215 points, or 0.6%, amid growing speculation about Donald Trump’s potential appointment to a key Federal Reserve leadership role. Tesla shares rose 7.3% on renewed investor confidence in its AI-driven vehicle roadmap and strong Q4 delivery projections.
- Dow Jones Industrial Average dropped 215.2 points (0.6%) to close at 36,453.1
- Trump’s potential appointment to a Federal Reserve leadership role is under speculation
- 10-year Treasury yield rose to 4.32% amid concerns over Fed independence
- Tesla (TSLA) shares jumped 7.3% to $206.80 on AI and delivery partnership news
- JPMorgan upgraded Tesla to $230 target price based on margin and demand outlook
- Market divergence reflects growing tension between macro-sensitive and tech-driven equities
Markets reacted cautiously on Monday as news emerged that former President Donald Trump is advancing in consideration for a senior Federal Reserve position, a development that could reshape monetary policy expectations. The Dow Jones Industrial Average closed down 215.2 points at 36,453.1, marking its third consecutive session of losses. The S&P 500 dipped 0.4% while the Nasdaq Composite edged 0.1% lower, reflecting investor unease over potential shifts in rate policy and inflation management. The speculation around Trump’s potential role at the Fed has intensified following anonymous sources citing internal Republican advisory discussions. While no official announcement has been made, the mere possibility of a politically influenced Fed appointment has triggered concerns about central bank independence. Treasury yields rose modestly, with the 10-year note climbing to 4.32%, reflecting higher expectations for prolonged rate stability. Tesla Inc. (TSLA) defied the broader market downturn, surging 7.3% to close at $206.80. The rally followed reports of accelerated development in its Full Self-Driving (FSD) v12.4 update and a new partnership with a major U.S. logistics firm to deploy autonomous delivery fleets. Analysts at JPMorgan raised their target price on TSLA to $230, citing improved margins and rising demand in China’s EV market. The divergence in market performance underscores the growing bifurcation between sectors sensitive to macroeconomic shifts—such as financials and industrials—and high-growth technology stocks that benefit from innovation narratives. As political discourse over central banking intensifies, investors are increasingly recalibrating risk exposure across asset classes.