Yahoo Finance

Key Takeaways

• U.S. equities tumbled at midday as President Donald Trump continued his criticism of Federal Reserve Chair Jerome Powell and no changes in U.S. tariff policies were announced.

• Tesla bull Dan Ives warned the EV maker faced a "code red situation" if CEO Elon Musk didn't refocus on leading the company.

• The $35.3 billion purchase of Discover Financial by Capital One was approved by U.S. banking regulators.

U.S. equities sank at midday after President Donald Trump again blasted Federal Reserve Chair Jerome Powell's leadership of the central bank, and there was little news about potential easing of U.S. tariffs. The Dow Jones Industrial Average, S&P 500, and Nasdaq all fell at least 2.7%.

Tesla (TSLA) shares slumped when longtime bull Dan Ives of Wedbush Securities said the electric vehicle (EV) maker was facing a "code red situation" unless CEO Elon Musk backed away from his work in the Trump administration and refocused his attention on Tesla.

Shares of Nvidia (NVDA) continued their losing ways on worries the Trump tariffs on China will significantly impact the artificial intelligence (AI) chipmaker's results.

Salesforce (CRM) shares dipped after DA Davidson downgraded the stock, arguing the business cloud platform is neglecting its core business to pursue AI opportunities.

Shares of Discover Financial Services (DFS) and Capital One Financial (COF) gained when U.S. regulators approved Capital One's $35.3 billion purchase of Discover.

Shares of Fidelity National Information Services (FIS) rose when the fintech firm agreed to an asset swap with payment technology provider Global Payments (GPN), with FIS acquiring Global Payments' issuer business while selling its Worldplay merchant services company. Global Payments shares dropped.

Netflix (NFLX) shares advanced when several analysts raised their price targets following the streaming giant's strong earnings report.

Oil futures fell. The price of gold soared to a record high. The yield on the 10-year Treasury note was up. The U.S. dollar lost ground to the euro, pound, and yen. Most major cryptocurrencies traded higher. 

Read the original article on Investopedia