Midday Market Roundup for Monday, April 21, 2025

Wall Street Plunges as Trump Renews Attacks on Fed Chair Powell

Wall Street endured a sweeping selloff by midday Monday as President Donald Trump’s renewed public attacks on Federal Reserve Chair Jerome Powell rattled investor confidence and compounded mounting anxiety over U.S. trade policy. The Dow Jones Industrial Average tumbled more than 1,100 points, the S&P 500 fell nearly 3%, and the Nasdaq Composite slid 3.3%, with losses accelerating as the morning progressed34611.

Trump’s Criticism of Powell Stokes Market Fears

President Trump’s escalating criticism of Powell triggered the latest round of volatility, including suggestions from White House economic adviser Kevin Hassett that the administration might consider removing the Fed Chair13. Trump’s repeated calls for immediate interest rate cuts and his accusations that Powell is acting “too late” have fueled concerns about the central bank’s independence when investors are already grappling with the economic fallout of aggressive new tariffs1345.

“Establishing trust in the central bank requires years, but it can be lost overnight,” warned Paul Donovan, UBS Global Wealth Management1 chief economist.

Tariffs and Trade Uncertainty Deepen the Rout

The selloff comes as investors brace for further developments in the White House’s fast-moving tariff agenda. Trump’s recent imposition of a 10% baseline tariff on all U.S. imports and higher duties on Chinese goods have revived fears of a global trade war. No new deals were announced over the weekend, and China warned of potential countermeasures356. The uncertainty has led to a “sell America” trend, with U.S. equities and bonds facing heavy selling pressure5.

Tech and Growth Stocks Lead Losses

Losses were broad-based, but technology and growth stocks bore the brunt of the decline. The so-called “Magnificent Seven” tech stocks were in the red, and large-cap growth shares fell as much as 3.5% by midday36. Tesla, Nvidia, Amazon, Meta, Apple, Microsoft, and Alphabet posted steep losses as investors rotated out of riskier assets3611.

Safe-Haven Rush: Gold Soars, Dollar Hits Lows

As risk aversion swept the markets, gold surged to a record high above $3,430 per ounce, up more than 29% for the year, as investors sought safety from escalating geopolitical and economic uncertainty7810161920. The U.S. dollar weakened to a 15-month low against major currencies, further fueling gold’s ascent2581012. Bitcoin also rebounded, reaching $88,000, as some investors looked to alternative stores of value18.

Treasury Yields Edge Higher

Meanwhile, U.S. Treasury yields climbed, with the 10-year note rising to 4.37% as bond prices fell256. The selloff in Treasurys reflects mounting concerns over U.S. fiscal stability and the potential for recession as trade and monetary policy uncertainty deepen56.

Key Corporate News

In corporate headlines, regulators approved Capital One’s $35 billion acquisition of Discover, sending both stocks higher even as the broader market slumped3. Netflix bucked the trend, rising after a strong earnings report, while most other sectors and companies saw declines36.

Outlook

With all 11 S&P 500 sectors in the red and volatility spiking, investors remain on edge for further policy developments from the White House and the Federal Reserve. The day’s events underscore how political, and policy uncertainty are now the dominant drivers of global markets.

Disclosure

This article is for informational purposes only and does not constitute investment advice, recommendations, or an offer to buy or sell any securities. All information presented is based on publicly available news, market data, and reputable financial journalism as of April 21, 2025. The reporting is intended to provide factual market context and analysis in accordance with SEC guidelines for fair, accurate, and non-promotional financial communication. The author does not have any financial interest in the securities or companies mentioned. Readers should perform their own due diligence and consult a qualified financial advisor before making investment decisions. All statements regarding market conditions, economic outlook, or company performance are strictly factual and not forward-looking projections.

Sources

• Reuters Markets: US stocks, dollar sink as Trump's criticism of Fed chair worries investors
  https://www.reuters.com/markets/global-markets-wrapup-1-2025-04-21/
• U.S. News & World Report: Stocks Tumble on Weakening Economy, Tariffs and Trump Comments on Fed’s Powell
  https://www.usnews.com/news/economy/articles/2025-04-21/stocks-tumble-on-weakening-economy-tariffs-and-trump-comments-on-feds-powell
• Investopedia: Gold Hits Another All-Time High as Trump Feuds With China, Fed
  https://www.investopedia.com
• Reuters Commodities: Gold extends record run, breaks above $3,400/oz on safe-haven rush
  https://www.reuters.com/markets/commodities/gold-soars-record-high-trade-war-concerns-weaker-dollar-2025-04-21/

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