Dow Jones Plummets More Than 500 Points Amid UnitedHealth Sell-Off and Federal Reserve Policy Concerns
On April 18, 2025, the Dow Jones Industrial Average experienced a sharp decline, shedding over 500 points as UnitedHealth Group’s stock plunged following disappointing earnings. The broader market downturn was further exacerbated by ongoing investor anxiety surrounding the Federal Reserve’s monetary policy trajectory. Analysts attribute the sell-off to heightened volatility in healthcare stocks and persistent macroeconomic uncertainties, particularly regarding interest rate decisions. Trading volumes surged as institutional investors adjusted positions ahead of key economic data releases, reflecting growing risk aversion in equity markets.
Trump vs. Powell
The market’s attention remained fixed on Fed Chair Jerome Powell, who warned Wednesday that higher tariffs could slow growth and push inflation higher.
Powell said the Fed would wait for more clarity on trade policy before making any rate decisions, dampening expectations for immediate rate cuts.
President Trump responded by intensifying criticism of Powell, suggesting the Fed chair’s “termination cannot come fast enough” and reportedly discussing his possible replacement.
Adding to market uncertainty, reports indicated Trump had spoken with former Fed governor Kevin Warsh as a potential successor to Powell.
Elsewhere, chipmaker TSMC beat expectations with a 60% surge in Q1 net profit, thanks to AI chip demand. Investors also awaited earnings from Netflix, seen as a rare tech bright spot amid broader weakness in the sector.
Yields on the 10-year Treasury ROSE to 4.325%, and the U.S. dollar ticked up modestly.
Stock and bond markets will be closed Friday for Good Friday.
Bitcoin (BTC) temporarily traded above $85,000 but settled in the $84,600 range at the time of writing.
