New York’s big dip: Why stocks are swinging and what investors should watch

2 minutes read

22 April 2025

New York’s big dip: Why stocks are swinging and what investors should watch

The US stock market has been on a rollercoaster, with sharp swings driven by political headlines and global trade tensions. Monday’s steep selloff saw the Dow plunge nearly 1,000 points, while the S&P 500 and Nasdaq also tumbled more than 2% each. Investors are now asking: what’s behind the volatility, and where do we go from here?

Fed under fire: Political pressure rattles markets

President Trump’s renewed criticism of Federal Reserve Chair Jerome Powell has thrown a spotlight on the central bank’s independence. Trump’s public remarks—calling Powell a “major loser” and threatening his removal—sparked a wave of uncertainty. As a result, investor confidence took a hit, and the markets responded with a broad selloff.

Larry Tarelli, founder of Blue Chip Trend Report, summed up the mood: “There’s an abundance of uncertainty right now concerning the tariff cycles and the economy. Introducing an additional layer of uncertainty with Jerome Powell only increases market volatility overall.”

The tension comes at a time when the Fed’s next moves are under scrutiny. Investors are watching for any sign of a rate cut, but Powell has signaled he intends to serve out his term, resisting political pressure. The standoff has left markets guessing about the future of US monetary policy.

Tariffs and trade: The new market wildcards

Since the announcement of sweeping tariffs on April 2, all three major indices have dropped over 9% The tariffs have hit nearly every sector, amplifying volatility and fueling fears of a prolonged trade war. The resulting uncertainty has pushed the CBOE Volatility Index (VIX)—Wall Street’s fear gauge—well above its historical average. A bar chart showing the percentage loss of three major stock market indices—Dow Jones, S&P 500, and Nasdaq—all with a loss of over 2%.

Marko Papic, chief strategist at BCA Research, offered a measured perspective: “The reason I’m sanguine that the tariffs are coming down, I actually think President Trump will be successful in pursuing trade deals in 90 days... but they’re going to be marginal victories for America.”

Investors are hoping for a resolution, but the path forward remains unclear. Any progress in trade negotiations could spark a relief rally, while further escalation may keep markets on edge.

Where do investors go from here?

Despite the turmoil, some experts see opportunity. John Stoltzfus, chief investment strategist at Oppenheimer, remains optimistic: “The pullbacks we’ve seen earlier this year have primarily resembled trims and ‘cuts’... as the underlying fundamentals continue to indicate that we are in a robust bull market.”

He points to steady consumer spending, strong earnings growth, and job creation as reasons for long-term optimism. For now, investors are bracing for more volatility, with upcoming earnings reports from giants like Tesla and Alphabet set to provide fresh direction.

The bottom line: Wall Street is navigating a storm of political and economic uncertainty. While the headlines are unsettling, many analysts believe that the market’s underlying strength could offer opportunities for those willing to weather the turbulence. Stay focused, keep an eye on fundamentals, and be ready for more twists ahead.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.