The U.S. equity markets took a steep downturn on April 21, 2025. The Dow plummeted by nearly 972 points, marking growing concerns over geopolitical tensions and potential corporate earnings risks that have investors on edge.

In the midst of the sell-off, major tech stocks suffered significant losses.

Former President Trump intensified his criticism of the Federal Reserve, calling for immediate action to cut rates. This political discourse has raised concerns about the independence of the Fed and its implications for market stability.

As uncertainty looms, investors have flocked to safe havens, driving gold prices to record highs. In contrast, the U.S. dollar experienced volatility, illustrating a flight towards traditional protective assets amid market fears.

With earnings season underway, analysts are increasingly concerned as many companies are revising their forecasts downward. Notably, Tesla’s significant pre-earnings drop reflects broader apprehensions regarding profit margins this quarter.

All sectors experienced declines, with technology, industrials, and consumer discretionary facing the hardest hit.

As we approach the May FOMC meeting, market expectations shift. With rising inflation and potential cuts to interest rates, the upcoming months could define whether this market correction becomes a deeper bear phase or a transient dip.