U.S. markets suffered their steepest drop in three years on April 21, 2025, with the Dow Jones Industrial Average plunging 1,200 points. The sharp sell-off was triggered by weaker-than-expected economic data and renewed political pressure from former President Donald Trump on the Federal Reserve to cut interest rates—raising fresh concerns over the Fed’s independence in shaping monetary policy.
The market turmoil was worsened by a new round of tariffs, which hit technology and industrial sectors particularly hard. As risk appetite waned, investors flocked to safe-haven assets like gold and Treasury bonds.
With policy uncertainty on the rise and volatility surging, investors are urged to reassess their portfolio allocations and adopt more flexible risk management strategies to navigate the shifting financial landscape.