US stock markets faced a severe downturn as the Dow Jones dropped over 1,200 points, with the S&P 500 and Nasdaq following suit. Investors are increasingly concerned about ongoing trade tensions, particularly relating to tariffs imposed by Trump, and criticisms directed at Federal Reserve Chair Powell. The value of the US dollar also plunged to a three-year low, further exacerbating market instability. As investors retreated from US assets, alternative investments like gold and Bitcoin gained traction. The uncertainty surrounding trade agreements and potential changes to Federal policies continues to shape a volatile economic landscape, prompting fears of a prolonged sell-off.