Political Turbulence and Market Volatility: Why These 5 Stocks Fell—and What Investors Should Do Next

The stock market is a barometer of collective sentiment, and on April 22, 2025, that sentiment turned sharply negative for WESCO (NYSE: WCC), Primoris (NYSE: PRIM), Matson (NYSE: MATX), Rocket Lab (NASDAQ: RKLB), and Astronics (NASDAQ: ATRO). The catalyst? President Trump’s public criticism of the Federal Reserve’s reluctance to cut interest rates, which reignited fears of political interference in monetary policy and sent shockwaves through sectors already reeling from trade tensions and economic uncertainty.

The Catalyst: Trump’s Fed Criticism

President Trump’s remarks on April 22, 2025, amplified concerns that the Fed’s independence was under threat. His argument—that slower rate cuts risked stifling economic growth—struck a nerve in a market already fragile from prolonged trade disputes with China. The S&P 500 had already dropped 2.4% the prior day due to these fears, and the continued volatility on April 22 underscored how political rhetoric can destabilize investor confidence.

The data shows each stock fell between 5.1% and 5.7% that day, with no company-specific news to explain the synchronized decline. This was a macro-driven sell-off, not a reflection of individual fundamentals.

Sector-Specific Pressures

While politics set the stage, each company’s sector dynamics amplified the impact:

WESCO (WCC): Industrial Sector Anxiety

As a distributor of maintenance and repair products, WESCO’s 5.5% drop reflects fears of a broader economic slowdown. Industrial companies are often early victims of reduced capital spending, and Trump’s criticism heightened uncertainty about whether the Fed could mitigate risks.

Primoris (PRIM): Construction’s Political Crosshairs

Primoris, which relies on infrastructure projects, fell 5.3%. Investors may have worried that political gridlock—whether over trade or fiscal policy—could delay new projects. With the U.S. government’s focus on China, domestic spending priorities remain unclear.

Matson (MATX): Trade Tensions and Shipping Demand

Matson’s 5.4% decline ties directly to its role in marine transportation. The company’s reliance on trade routes between Hawaii, Alaska, and Asia makes it acutely sensitive to geopolitical risks. With no resolution in sight for U.S.-China trade disputes, investors grew nervous about reduced cargo volumes.

Rocket Lab (RKLB): Aerospace Volatility

Rocket Lab’s 5.7% drop defies its recent success in securing hypersonic launch contracts. The stock’s frequent swings (often exceeding 5% in a day) are a hallmark of its high-risk profile. This time, though, the sell-off was purely tied to macro factors, as no company-specific news emerged.

Astronics (ATRO): Aerospace Sensitivity to Economic Downturns

Astronics, which specializes in aerospace components, fell 5.1%. Its decline mirrors broader fears about a slowdown in air travel and defense spending—a sector that thrives on stability but suffers in uncertain environments.

The Broader Market Context

The S&P 500’s 2.4% drop on April 21 and further declines on April 22 highlight how markets overreact to political noise. Historically, such volatility creates buying opportunities for investors who can look past short-term noise. For instance, Rocket Lab’s stock had surged 30% in 2025 before April 22, suggesting its long-term potential remains intact despite near-term swings.

What Investors Should Do Now

1. Separate Signal from Noise: The April 22 decline was driven by macro risks, not company-specific issues. Investors should analyze fundamentals: WESCO’s strong cash flow, Primoris’s backlog of projects, and Matson’s niche shipping dominance remain intact.
2. Monitor the Fed’s Response: If the Fed signals a pivot to rate cuts, markets could rebound sharply. A would reveal whether investors are pricing in policy changes.
3. Consider Sector Diversification: Aerospace and infrastructure stocks may remain volatile, but pairing them with defensive sectors could mitigate risk.

Conclusion: Volatility Creates Opportunity

The synchronized decline of these five stocks on April 22, 2025, was a symptom of a market reacting to political and economic uncertainty. However, the data tells a nuanced story:
- WESCO’s trailing P/E of 14.5 (vs. the industrial sector average of 18) suggests it’s undervalued.
- Matson’s dividend yield of 2.3% offers stability amid volatility.
- Rocket Lab’s 10-year revenue growth rate of 22% indicates long-term potential, even with short-term swings.

History shows that political events often create buying opportunities in quality stocks. While Trump’s rhetoric and trade tensions will linger, investors who focus on fundamentals and Fed policy shifts could capitalize on these dips. As the old adage goes: “Be fearful when others are greedy, and greedy when others are fearful.” April 22, 2025, was a day to be greedy.