Tech Stocks Crash as Wall Street Tumbles on Fed Criticism, Trade Fears
Tech stocks suffer massive losses on April 21 after Trump attacks the Fed and reignites China trade tensions, wiping out billions in market value.
Key Highlights:
Tech Stocks Crash as Nasdaq Sinks on April 21
Tech stocks crashed sharply on April 21, 2025, with the Nasdaq Composite plunging 1.4%, as a combination of political pressure on the Federal Reserve, escalating U.S.-China trade tensions, and pre-earnings anxiety rocked Wall Street. The sell-off triggered a $3.8 trillion wipeout in market value from the tech sector alone.
Index Snapshot – April 21
| Index | Change | Performance (%) |
|---|---|---|
| Nasdaq Composite | ▼ 1.4% | 13,284.22 |
| S&P 500 | ▼ 1.0% | 4,898.34 |
| Dow Jones | ▼ 287 points | 38,941.32 |
The S&P 500 has now fallen nearly 15% from its peak two months ago, officially entering correction territory.
Top Tech Losers – April 21
| Company | Price | Daily Change |
|---|---|---|
| Tesla (TSLA) | $227.98 | ▼ $13.39 (-5.55%) |
| Meta (META) | $489.44 | ▼ $12.04 (-2.40%) |
| Microsoft (MSFT) | $363.48 | ▼ $4.30 (-1.17%) |
| Apple (AAPL) | $191.95 | ▼ $4.99 (-2.53%) |
| Nvidia (NVDA) | $98.24 | ▼ $3.19 (-3.14%) |
| Alphabet (GOOG) | $151.12 | ▼ $2.24 (-1.46%) |
What’s Driving the Tech Crash?
📉 1. Fed Independence Questioned
Former President Donald Trump slammed Federal Reserve Chair Jerome Powell, accusing him of delaying rate cuts for political reasons. The attack raised serious concerns about the Fed’s independence, rattling investor confidence just days before the FOMC’s next public remarks.
🌐 2. U.S.-China Trade Fears Resurface
Tensions with China flared up after new U.S. restrictions on AI and chip exports, with Beijing threatening retaliatory tariffs. Tech companies with major China exposure—like Apple, Nvidia, and Tesla—saw some of the steepest losses.
💼 3. Earnings Uncertainty Looms
With Microsoft, Meta, Tesla, and Alphabet all set to report earnings this week, investors are derisking portfolios, especially in richly valued megacaps. Forward guidance is expected to be a make-or-break factor.
Sector Summary – April 21
| Sector | Sentiment |
|---|---|
| Technology | 🚨 Strongly Negative |
| Consumer Discretionary | 😟 Weak |
| Industrials | 🟠 Mildly Negative |
| Financials | 🔁 Mixed |
| Energy | 🟢 Stable |
Market Reactions Beyond Equities
- 10-Year Treasury Yield: Rose to 4.70%, reflecting risk-off mood and hawkish expectations
- Oil Prices: Down $1.10/barrel, as recession fears dampen demand outlook
- Dollar Index: Weak against Yen and Euro, signaling global flight to safety
- Bitcoin: Jumped nearly 3.5%, as investors sought decentralized havens
What to Watch Ahead
- Big Tech Earnings: Meta (April 24), Microsoft & Tesla (April 23), Alphabet (April 25)
- Powell Commentary: Markets await Fed clarity on rates amid political heat
- China’s Next Move: Any escalation could fuel further downside in global tech
- S&P 500 Key Support: Watching the 4,800 level for breakdown risk
Final Take on Wall Street Today
The Tech Stocks Crash on April 21 underscores just how fragile market sentiment has become. With political risk, trade uncertainty, and valuation concerns converging, Wall Street is bracing for one of the most pivotal earnings weeks in years. Investors are shifting to defense — and tech, once the engine of the bull run, is now leading the pullback.
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