#USStockDrop U.S. Stock Market Plunges Amid Political and Economic Uncertainty

U.S. stock markets experienced a sharp decline on April 21, 2025, driven by growing investor anxiety over political interference and volatile economic policies. The S&P 500 dropped 2.4%, the Dow Jones Industrial Average fell 2.5%, and the Nasdaq Composite slid 2.6%, marking one of the steepest single-day drops in recent months.

The decline was triggered by former President Donald Trump's renewed criticism of the Federal Reserve and its chair, Jerome Powell. His threats to fire Powell over interest rate decisions raised concerns about the Fed's independence and spooked investors. Adding to the unease were sweeping new tariffs, including a 10% blanket import tariff and steep levies on Chinese goods, which further stoked fears of a trade war and slowed economic growth.

Technology giants were hit hard, with Tesla reporting a 40% drop in profits and Alphabet posting weaker-than-expected ad revenue growth. Their poor performance dragged the broader market down.

Financial leaders, including Carlyle Group CEO Harvey Schwartz, warned of the growing risk of a recession. As uncertainty looms over both policy direction and corporate health, investors are bracing for continued market turbulence in the weeks ahead.