U.S. Stock Market Summary for Monday, April 21, 2025

Major Indices

  • S&P 500: -2.36% → 5,158.20

  • Dow Jones Industrial Average: -2.48% → 38,170.41

  • Nasdaq 100: -2.46% → 17,808.30

  • Russell 2000: -2.14% → 1,840.32

All major indices closed sharply lower, with the S&P 500 now down nearly 16% from its February high, approaching bear market territory.

Market Overview

U.S. equities plunged Monday amid a storm of political and monetary uncertainty. President Donald Trump escalated his rhetoric against Federal Reserve Chair Jerome Powell, branding him a “major loser” and calling for immediate rate cuts. These comments ignited concerns over the Fed's independence, further rattling investor sentiment already shaken by aggressive new tariffs on Chinese and EU imports.

The U.S. Dollar Index fell to a 15-month low as investors fled to safe havens, with gold and the Swiss franc seeing strong inflows. Equities saw broad-based selling; decliners outnumbered advancers by nearly 5-to-1 on the NYSE, and overall volume remained subdued—suggesting risk aversion and uncertainty ahead of earnings season.

Sector Highlights

All 11 S&P 500 sectors ended the day in the red. Technology and consumer discretionary led the declines, driven by heavy selling in growth stocks:

  • Tesla fell 5.8% after reports of potential delays in its affordable Model Y and a critical analyst note warning of a “code red” crisis ahead of Tuesday's earnings.

  • Nvidia dropped 4.5%, pressured by rising concerns over competition from Huawei’s upcoming AI chips.

Economic Snapshot

The Conference Board's Leading Economic Index declined by 0.7% in March, pointing to possible slowing momentum in the economy. Concurrently, the U.S. bond market signaled stress, with long-term yields rising amid falling prices, and the dollar weakening sharply. The heightened tariff environment and political interference are exacerbating fears of stagflation.

Expert Commentary

  • Mike Wilson (Morgan Stanley) warned of earnings uncertainty reminiscent of early pandemic levels. Forecasts for S&P 500 EPS growth have been slashed from 11.4% to 6.9% YTD.

  • Michael Brown (Pepperstone) cautioned that firing Powell could trigger extreme market volatility and capital flight.

  • Jed Ellerbrook (Argent Capital) emphasized that central bank independence is crucial for sustainable growth and stable inflation.

  • Chris Wong (OCBC) said even rumors of Fed credibility erosion could “seriously undermine trust in the U.S. dollar.”

Government & Political Notes

President Trump’s imposition of sweeping tariffs—104% on Chinese imports and 20% on EU goods—has lifted the average U.S. tariff rate to 22%, its highest since 1910. Despite his assertion that trade talks are “progressing,” markets remained skeptical.

Adding fuel to the fire, reports emerged that Trump may be exploring the legality of removing Powell from office, further deepening investor unease over the politicization of the Fed.

Conclusion

U.S. markets entered the week under pressure, with political tension, monetary policy fears, and trade disruptions creating a volatile environment. With the S&P 500 teetering near bear market territory and key earnings on deck—especially from Tesla, Alphabet, Intel, and Boeing—investors are bracing for continued turbulence. The Fed’s credibility and the administration’s tariff trajectory remain critical variables for market stability in the weeks ahead.

 

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