ISTANBUL

US stocks ended Thursday in negative territory while the VIX index soared more than 10% as tension between US President Donald Trump and Fed Chair Jerome Powell continued.

The Dow fell 0.74%, or 330.3 points, to close at 44,130.98.

The Nasdaq was down 0.03%, or 7.23points, to 21,122.45, and the S&P 500 dropped 0.37%, or 23.51 points, to 6,339.39.

The Volatility Index (VIX), also known as the “fear index," rose 10.4% to 17.09.

Following the Fed’s decision Wednesday to keep its policy rate unchanged, attention turned to tariffs, macroeconomic data and corporate balance sheets, while stock markets followed a negative trend.

Trump ramped up his criticism of Powell after the Fed's decision. He called that Fed chair "TOO LATE, and actually, TOO ANGRY, TOO STUPID, & TOO POLITICAL, to have the job."

On the trade front, as news flows regarding tariffs the US plans to impose on trading partners, White House spokesperson Karoline Leavitt announced that letters had been sent to 17 countries regarding the tariffs, and other countries that had not reached an agreement or received a letter would be notified by midnight Thursday about the Aug. 1 deadline.

Trump, meanwhile, announced that an agreement had been reached with Mexico to continue negotiations to sign an agreement during the 90-day extension, during which existing tariffs would remain in place.

On Wednesday, Trump said a trade agreement had been reached with South Korea, stating a 15% tariff would be applied to that country.

Shares of Microsoft and Meta gained 3.95% and 11.25%, respectively, following strong results in earnings reports.