Wall Street and the dollar tumble as investors retreat further from the United States

NEW YORK (AP) — Wall Street weakened Monday as investors worldwide get more skeptical about U.S. investments because of President Donald Trump’s trade war and his criticism of the Federal Reserve, which are shaking the traditional order.

The S&P 500 sank 2.4% in another wipeout. That yanked the index that’s at the center of many 401(k) accounts 16% below its record set two months ago.

The Dow Jones Industrial Average dropped 971 points, or 2.5%, while losses for Tesla and Nvidia helped drag the Nasdaq composite down 2.6%.

Perhaps more worryingly, U.S. government bonds and the value of the U.S. dollar also sank as prices retreated across U.S. markets. It’s an unusual move because Treasurys and the dollar have historically strengthened during episodes of nervousness. This time around, though, it’s policies directly from Washington that are causing the fear and potentially weakening their reputations as some of the world’s safest investments.

Trump continued his tough talk on global trade as economists and investors continue to say his stiff proposed tariffs could cause a recession if they’re not rolled back. U.S. talks last week with Japan failed to reach a quick deal that could lower tariffs and protect the economy, and they’re seen as a “test case,” according to Thierry Wizman, a strategist at Macquarie.

“The golden rule of negotiating and success: He who has the gold makes the rules,” Trump said in all capitalized letters on his Truth Social Network. He also said that “the businessmen who criticize tariffs are bad at business, but really bad at politics,” likewise in all caps.

Trump has recently focused more on China, the world’s second-largest economy, which has also been keeping up its rhetoric. China on Monday warned other countries against making trade deals with the United States “at the expense of China’s interest” as Japan, South Korea and others try to negotiate agreements.

“If this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner,” China’s Commerce Ministry said in a statement.

Also hanging over the market are worries about Trump’s anger at Federal Reserve Chair Jerome Powell. Trump last week criticized Powell again for not cutting interest rates sooner to give the economy more juice.

The Fed has been resistant to lowering rates too quickly because it does not want to allow inflation to reaccelerate after slowing nearly all the way down to its 2% goal from more than 9% three years ago.

Trump talked Monday about a slowdown for the U.S. economy that could be coming unless “Mr. Too Late, a major loser, lowers interest rates, NOW.”

A move by Trump to fire Powell would likely send a bolt of fear through financial markets. While Wall Street loves lower rates, largely because they boost stock prices, the bigger worry would be that a less independent Fed would be less effective at keeping inflation under control. Such a move could further weaken, if not kill, the United States’ reputation as the world’s safest place to keep cash.

All the uncertainty striking pillars at the center of financial markets means some investors say they’re having to rethink the fundamentals of how to invest.

“We can no longer extrapolate from past trends or rely on long-term assumptions to anchor portfolios,” strategists at BlackRock Investment Institute said in a report. “The distinction between tactical and strategic asset allocation is blurred. Instead, we need to constantly reassess the long-term trajectory and be dynamic with asset allocation as we learn more about the future state of the global system.”

That in turn could push investors outside the United States to keep more of their money in their home markets, according to the strategists led by Jean Boivin.

On Wall Street, Big Tech stocks helped lead indexes lower ahead of their latest earnings reports due later this week.

Tesla sank 5.7%. The electric vehicle maker’s stock has more than halved from its record set in December on criticism that the stock price had gone too high and that CEO Elon Musk’s role in leading the U.S. government’s efforts to cut spending is damaging the brand.

Nvidia fell 4.5% for a third straight drop after disclosing that U.S. export limits on chips to China could hurt its first-quarter results by $5.5 billion.

They led another wipeout on Wall Street, and 92% of the stocks within the S&P 500 fell.

Among the few gainers were Discover Financial Services and Capital One Financial, which climbed after the U.S. government approved their proposed merger. Discover rose 3.6%, while Capital One added 1.5%.

All told, the S&P 500 fell 124.50 points to 5,158.20. The Dow Jones Industrial Average dropped 971.82 to 38,170.41, and the Nasdaq composite tumbled 415.55 to 15,870.90.

Gold also climbed to burnish its reputation as a safe-haven investment, unlike some others.

In the bond market, shorter-term Treasury yields fell as investors expect the Fed to cut its main overnight interest rate later this year to support the economy.

But longer-term yields rose with doubts about the United States’ standing in the global economy. The yield on the 10-year Treasury climbed to 4.40%, up from 4.34% at the end of last week and from just about 4% earlier this month. That’s a substantial move for the bond market.

The U.S. dollar’s value, meanwhile, fell against the euro, Japanese yen, the Swiss franc and other currencies.

AP Business Writer Elaine Kurtenbach contributed.

Trader Michael Capolino works on the floor of the New York Stock Exchange, Monday, April 21, 2025. (AP Photo/Richard Drew)

Trader Robert Arciero works on the floor of the New York Stock Exchange, Monday, April 21, 2025. (AP Photo/Richard Drew)

Trader Steven Gohl works on the floor of the New York Stock Exchange, Monday, April 21, 2025. (AP Photo/Richard Drew)

Trader Thomas McCauley works on the floor of the New York Stock Exchange, Monday, April 21, 2025. (AP Photo/Richard Drew)

Trader John Bishop, left, works with colleagues on the floor of the New York Stock Exchange, Monday, April 21, 2025. (AP Photo/Richard Drew)

Trader Sal Suarino works on the floor of the New York Stock Exchange, Monday, April 21, 2025. (AP Photo/Richard Drew)

A board above the trading floor of the New York Stock Exchange shows the closing number for the Dow Jones industrial average, Thursday, April 17, 2025. (AP Photo/Richard Drew)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 21, 2025. (AP Photo/Ahn Young-joon)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 21, 2025. (AP Photo/Ahn Young-joon)

A currency trader works near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 21, 2025. (AP Photo/Ahn Young-joon)

Ariana Grande, Teyana Taylor, Timothée Chalamet and a sea of other stars said goodbye to color at this year's Golden Globes, opting instead for black. And many in the crowd stuck with tried and true old Hollywood glamour Sunday.

But even in basic black, the red carpet had plenty of personal flourishes and playful embellishments.

Risk-takers Taylor, a winner for “One Battle After Another,” and Jenna Ortega went with “whale tails,” aka the tops of thongs, peeking out the backs of their black gowns. Taylor did it with her custom slinky Schiaparelli gown that showed off a deep low-cut back with a glittery low-hanging bow thong. Ortega, keeping it goth, wore a Dilara Findikoglu gown with black shoulder tassels and a black thong.

“I thought that was such a cheeky callback to Y2K fashion,” InStyle Fashion Director Kevin Huynh said. “I was just like, wow, you wouldn’t expect that on a red carpet.”

Grande left behind her “Wicked” character's signature pink color for a black Vivienne Westwood couture dress but brought back her ponytail. Other notable celebrities in black included Ayo Edebiri, Selena Gomez, Miley Cyrus and Mia Goth.

Edebiri chose a black off-the-shoulder Chanel dress embellished with jewels on the shoulders from Matthieu Blazy’s Métiers d’Art 2026 show.

Celebrities held onto their gowns and watched their steps as they posed for photos on high stairs that served as the red carpet. Like the Met Gala, they lined up at the bottom and had to perilously climb their way up.

The 83rd Golden Globes gives a glimpse into how celebrities will showcase their original take on fashion as the awards season progresses. Since 1944, the show has honored the best in film and television.

The carpet, at The Beverly Hilton in Beverly Hills, California, is a chance for nominees to make a statement, though some are beholden to fashion houses who pay them as ambassadors.

Several, including George Clooney, wore Giorgio Armani. The fashion world lost Armani in September, but his eponymous brand lives on.

“It was nice to see so many attendees, including Julia Roberts and Kate Hudson, wearing the brand and pay tribute,” said Véronique Hyland, fashion features director for Elle.

Not all celebrities followed the black dress trend.

Host Nikki Glaser, who held hosting duty for the second time, wore a strapless satin blush-pink corseted satin gown with a full skirt by Zuhair Murad. Emma Stone stunned in a butter yellow Louis Vuitton skirt set.

“Sinners” star Wunmi Mosaku stunned in a flowy yellow Matthew Reisman gown. The mother-to-be revealed her baby bump on the carpet. Mosaku's co-star Hailee Steinfeld showed off her pregnant figure on the carpet in a peach colored gown.

Stars shone in metallics. “Sentimental Value” actor Renate Reinsve twirled on the carpet in a shimmery silver tasseled dress by Nicolas Ghesquiere for Louis Vuitton. Her co-star Elle Fanning's Gucci dress was embroidered with Norwegian flowers in honor of their Norwegian drama film.

Rising star Chase Infiniti reflected back the carpet and all its stars in her mirrored corseted gown by Nicolas Ghesquiere for Louis Vuitton.

“She’s now Louis Vuitton ambassador, which I think kind of shows her potential as a star,” Vanity Fair style writer José Criales-Unzueta said. “So much of what happens behind the scenes helps define what we’re looking at, whether it’s a deal, whether it sponsorship, whether it is brand ambassadorship.”

Claire Danes eschewed the academic, laid-back tailored looks of her “Beast in Me” character for an effortlessly elegant, couture gown designed by her close friend Zac Posen for GapStudio. Posen and Danes’ friendship and creative collaboration began in high school.

Posen began working on Danes' Golden Globe gown in November. As both creative director for Gap and GapStudio designer, Posen told The Associated Press that elevating the American essential into eveningwear is part of his creative process for the brand.

For Danes' look, Posen transformed the concept of the classic Gap pocket T-shirt into an off-white silk jersey couture gown with subtle bugle beaded detailing and embroidery. The shimmering dress featured a low scoop back and front pocket detail.

“Claire has a great elegance to her and is deeply inherently sophisticated, but yet cool,” Posen said. “Those elements fit perfectly with one of our icons that has built and defined our brands, the pocket tee.

Celebrities are keeping the sheer dressing trend alive with no signs of it slowing down. Lisa of Blackpink wore a black sheer Jacquemus dress, and Jennifer Lopez posed in a see-through dress by Jean-Louis Scherrer.

Jennifer Lawrence walked the carpet in a floral sheer dress by Sarah Burton at Givenchy and accessorized her look with a glamorous floral silk stole.

“Just to go out in a naked dress that leaves very little to the imagination is one thing but what Jennifer Lawrence did was such a romantic approach to it,” Huynh said. “I think that really says a lot to Sarah Burton, the designer of Givenchy. She is a woman designing for women.”

The male nominees didn’t stray too far from traditional looks. Colman Domingo pared down his typical colorful suits for a black suit by Valentino adorned with silver leaf brooches down his lapel. Timothée Chalamet, a winner for “Marty Supreme,” has become one to watch for his fashion choices. Departing from his past colorful looks, Chalamet wore a black velvet vest and jacket from Chrome Hearts with black Timberland boots. Chalamet's partner of three years, Kylie Jenner, did not walk the carpet with the actor, but viewers captured her in a custom silver column look by Ashi Studio. It was hand-embroidered with a fan-shaped crystal bead neckline.

After his viral premiere orange look for “Marty Supreme,” Criales-Unzueta said Chalamet decided on a more traditional movie star style by choosing all black.

“Heated Rivalry” star Hudson Williams brought the cummerbund back but with a laid-back twist. The breakout star paired a white-peak lapel dinner jacket with an unbuttoned silk shirt. Williams, along with his co-star Connor Storrie, were presenters during the ceremony. Storrie wore a black tuxedo jacket by Saint Laurent, with black tie and shades.

“It’s really just sexy takes on classic menswear with just those little bit of edge to things,” Huynh said.

Jenna Rosenstein, beauty director for Harper’s Bazaar, noted Storrie's hair transformation. He plastered his trademark curly locks into a shaggy, retro-inspired mullet. Among the women, beauty highlights included the swoopy bobs of Edebiri and Gomez, she said.

“If there’s one thing you should invest in after this carpet, it’s a really good round brush, a can of hairspray and a statement lipstick,” Rosenstein said.

AP writer Leanne Italie contributed to this report.

For more coverage of the 2026 Golden Globe Awards, visit: https://apnews.com/hub/golden-globe-awards

Timothee Chalamet arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Miley Cyrus arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Ariana Grande arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Ariana Grande arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Connor Storrie arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Colman Domingo arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Ayo Edebiri arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Jenna Ortega arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Jenna Ortega arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Teyana Taylor arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Richard Shotwell/Invision/AP)

Teyana Taylor arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Justine Lupe arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Brittany Snow arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Brittany Snow arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Wunmi Mosaku arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Lisa arrives at the 83rd Golden Globes on Sunday, Jan. 11, 2026, at the Beverly Hilton in Beverly Hills, Calif. (Photo by Jordan Strauss/Invision/AP)

Ariana Grande arrives at the 31st Annual Critics Choice Awards on Sunday, Jan. 4, 2026, at The Barker Hanger in Santa Monica, Calif. (Photo by Richard Shotwell/Invision/AP)