Wall St drops over 2% as Trump criticizes Fed Chair Powell, sparking economic slowdown fears

From Yahoo Finance: 2025-04-21 05:55:00

U.S. stocks plunged over 2% as President Trump attacked the Fed Chair, fueling fears of economic slowdown. The S&P 500 is 16% below its record high, nearing bear market territory. The Sino-U.S. trade war escalated, with China warning against deals favoring the U.S. The Dow fell nearly 1,000 points.

All sectors in the S&P 500 closed negatively with tech and consumer discretionary hit hardest. Earnings season kicks into high gear, with 68% of companies beating expectations. Analysts project 8.1% S&P 500 earnings growth for Q1, down from initial 12.2%. Notable earnings this week include Tesla, Alphabet, Boeing, and more.

Nvidia dropped after Huawei planned mass shipments of AI chips. Tesla fell due to Model Y production delay. FIS gained after a brokerage upgrade. Market ratios were negative on NYSE and Nasdaq. S&P 500 and Nasdaq recorded new highs and lows. U.S. exchange volume was lower than average.

Read more: Wall St ends sharply lower following Trump’s anti-Powell tirade