Market Wrap | U.S. Stock Market Plummets Amid Fed Rate Hike Fears and Political Tensions

On April 21, 2025, the U.S. stock market experienced significant declines, with the S&P 500 Index falling 2.36%, the Dow Jones Industrial Average dropping 2.48%, and the Nasdaq Composite Index declining 2.55%. This downturn was potentially influenced by macroeconomic factors such as the high probability of the Federal Reserve maintaining interest rates in May and the political tension involving President Trump's pressure on Fed Chair Powell to lower rates. This situation contributes to market uncertainty and investor caution.

The S&P 500 index saw mixed performance across various sectors. The Utilities, Technology, Consumer Discretionary, and Energy sectors underperformed relative to the broader market index.

Nvidia shares dropped 4.51% as the company faces potential revenue loss due to export restrictions on AI chips to China. Palantir's stock fell 3.18% amid concerns of a potential slowdown in government contracts, impacting future revenue growth. Oracle's shares declined 4.51% after CANADA LIFE ASSURANCE Co cut its stake by 12.9%, indicating reduced investor confidence. Salesforce's stock dropped 4.45%, with disappointing earnings results or reduced future guidance potentially affecting its share price. Chevron's shares fell 3.00% due to operational disruptions from unexpected refinery shutdowns. Costco Wholesale's stock declined 3.69% as the company faces potential profit margin pressure from rising operational costs. UnitedHealth Group's shares dropped 6.34% following a reported increase in medical costs within its Group Medicare Advantage segment. Meta's stock fell 3.35% as the company faces regulatory scrutiny over data privacy issues. Tesla's shares dropped 5.75% with concerns about its ability to sustain growth as it might postpone the launch of a more affordable Model Y. Amazon.com's stock declined 3.06% after the company paused international data center lease negotiations, raising concerns about its growth strategy. T-Mobile US's shares fell 3.27% due to U.S.-China trade tensions and tariffs impacting market sentiment and corporate earnings.

Upexi's stock surged over 330%, driven by its expansion into e-commerce through a new acquisition, which is set to broaden its market reach and product offerings. SHF Holdings saw an 87.89% rise after announcing a strategic partnership with a leading technology firm, aiming to enhance its service offerings. Meanwhile, Thunder Power's stock plummeted 64.87% due to production delays and financial instability, which has shaken investor confidence. Lixiang Education's stock dropped 58.04% following disappointing financial performance and a decline in student enrollment.

The U.S. Commerce Department has announced final tariffs on solar cell imports from four Southeast Asian nations, which may impact the renewable energy sector and related stocks. Walgreens has agreed to pay $300 million to settle allegations with the Department of Justice over its role in the opioid crisis, potentially affecting its financial outlook and share performance. The Federal Reserve's Reverse Repo Operation saw 38 counterparties take $114.114 billion, indicating a strong demand for short-term government securities, which could influence liquidity and interest rates in the market. Additionally, the S&P 500 and Nasdaq 100 have both experienced declines, falling by 3% and 3.3% respectively, signaling broader market volatility.