Dear Student,
What a week…
The markets didn’t just wobble—they straight-up stumbled into some of the worst milestones we’ve seen in nearly a century.
Let’s start with the Dow. It’s currently on track for its worst April since 1932—Great Depression territory. Back then, we were dealing with bread lines and dust bowls. Today? It’s inflation, rate worries, and sticky economic data that just won’t give the Fed the green light to ease up.
The S&P 500 isn’t faring much better. After rallying earlier in the year, it’s now given up nearly all its gains from March. That’s a fast turnaround—and not the kind you want if you’re holding long positions without a plan.
And tech took a big hit, too. The Nasdaq slipped under key support levels midweek, as big-name earning, like Intel Corporation (INTC), came in light and spooked the bulls. In fact, INTC plummeted by as much as 10% after issuing a weak revenue forecast and highlighting concerns over trade tensions.
The bottom line? This wasn’t a “bad hair day” for the markets—it was a full-on storm. And I’m sure you and your peers have lots of questions. So, going forward, we’re going to get back to our Friday Mailbag, where I’ll answer your biggest questions of the week.
(Click here to email me at any time)
Now let’s dive into three great ones that came in:
Question #1:
Tom, do you really think Trump will fire Fed Chair Jerome Powell?
Great question—and honestly, I wouldn’t be surprised if there’s already a prop bet in Vegas on the odds of that happening. But I’m not even gonna look.
Here’s the deal: I don’t see it happening. A seasoned financial journalist—you might remember him from his days on CNBC—once said that a move like that could seriously shake public trust in U.S. financial institutions. I agree 100%.
Markets hate uncertainty. Firing Jerome Powell would create a lot of it. It’d throw a wrench into how things operate going forward, and that’s not something Trump wants right now. He’s already catching heat for the market volatility. Pulling a move like that, knowing it could trigger more downside? I don’t think that’s a risk he wants to take.
Question #2:
What are the potential repercussions if Fed Chair Powell gets fired?
Look, I don’t think it’s going to happen, so I’m not big on diving into hypotheticals here.
That said, as of today, President Trump has publicly stated he has “no intentions” of firing Powell. So, while the chatter is out there, it seems—for now—that’s all it is: chatter.
Question #3:
How do you think the markets will react if President Trump doesn’t fire Jerome Powell?
It’s wild how much attention this topic is getting. But you know what? Rightfully so—it would have a big market impact.
That said, we’re already seeing signs of relief after Trump said he doesn’t plan to fire Powell. The big question is: can the bounce hold? One green day is good—but we want to see follow-through.
We’ll talk about what’s next – including my May market forecast – soon.
So keep an eye on your inbox…
Have a great weekend!
Tom Gentile
America’s Pattern Trader
