$300bn wiped out as Charles River dives 28%, CarMax tumbles — here’s what triggered the April 10 crash

The U.S. stock market faced one of its most significant single-day reversals in recent months on April 10, 2025, as investors reacted sharply to escalating geopolitical risks, weakening macroeconomic signals, and a resurgence of trade tensions with China. The Nasdaq Composite plunged 4.3%, the S&P 500 shed 3.5%, and the Dow Jones Industrial Average dropped 2.5%, wiping out more than $300 billion in market capitalisation within hours.

The steep decline followed U.S. President Donald Trump’s announcement of a dramatic escalation in tariffs on Chinese imports. The White House stated that tariff rates on Chinese goods would be raised to 125%, bringing the cumulative trade penalty to 145%. This move renewed fears of a prolonged trade war and its potential impact on global supply chains, cost structures, and multinational corporate earnings.

As investors reassessed growth expectations across sectors, nearly all major indices turned sharply negative. Equities in technology, energy, consumer discretionary, and industrials were particularly hard hit. The session saw dozens of major U.S. companies post double-digit losses, with the top losers list dominated by stocks exposed to global trade dynamics and cyclical economic pressures.

What led to Charles River Laboratories’ massive stock plunge?

Charles River Laboratories International, Inc. recorded the steepest single-day drop among U.S.-listed stocks, with its shares plummeting 28.13% to close at $99.95. The company, a global provider of preclinical and clinical laboratory services to pharmaceutical and biotechnology firms, faced a wave of selling pressure after updating investors on its revised financial outlook.

The update suggested a slowdown in research spending among biotech clients and indicated potential delays in outsourced drug discovery programs, partly due to shifting R&D budgets and tariff-induced import restrictions on lab supplies. Charles River’s stock, which had already underperformed broader healthcare benchmarks in early 2025, has now declined by over 58% year-to-date, raising questions about the resilience of the contract research sector in a high-cost, low-visibility operating environment.

How did CarMax’s earnings disappoint impact investor sentiment?

CarMax, Inc. saw its shares tumble by 17.00% to $66.45 after reporting disappointing quarterly results. The company flagged a combination of reduced demand, inventory imbalances, and financing challenges that have eroded its profit margins. Elevated interest rates have continued to dampen car loan originations, while used vehicle affordability remains under pressure due to sustained inflation in the automotive market.

Investors reacted negatively not only to the earnings miss but also to CarMax’s decision to retract its long-term margin guidance. Management cited ongoing macroeconomic uncertainty and weakening consumer confidence as key factors behind the strategic pivot. The stock’s decline added to broader concerns in the auto retail sector, which has seen erratic demand trends in the wake of pandemic-era supply disruptions and ongoing pricing volatility.

Why did technology and semiconductor stocks fall sharply?

Technology stocks were at the epicentre of the April 10 selloff, as traders recalibrated expectations for growth, profitability, and supply chain stability in light of renewed trade hostilities. Monolithic Power Systems, Inc. dropped 13.73% to $484.71, while Microchip Technology Incorporated fell 13.56% to $38.81. Marvell Technology, Inc. and SiTime Corporation each posted losses of over 13%, highlighting the sector-wide vulnerability.

With semiconductor companies relying heavily on manufacturing and assembly operations in Asia, the announcement of sharply higher U.S. tariffs on Chinese imports raised the spectre of increased input costs, regulatory bottlenecks, and longer lead times. Analysts noted that any delay in chip shipments or restrictions on cross-border technology transfers could have significant downstream effects on device makers and AI-related infrastructure buildouts.

Investor concerns also centred on weakening demand for end-user electronics and enterprise systems, both of which are sensitive to capital expenditure trends. Several tech firms on the losers list — including Mobileye Global Inc. and Universal Display Corporation — are also exposed to the automotive and consumer electronics sectors, where spending has slowed in recent quarters.

What factors dragged energy and materials companies lower?

Crude oil prices fell more than 3% intraday, triggering a synchronized decline in energy equities. Patterson-UTI Energy, Inc. dropped 14.79% to $5.59, while Murphy Oil Corporation fell 13.85% to $19.97. SM Energy Company, Weatherford International, and APA Corporation each posted double-digit losses as well, reflecting the market’s pessimism about near-term energy demand.

Oilfield services and upstream exploration companies are particularly sensitive to global energy consumption trends. With renewed tariffs expected to weigh on industrial output and manufacturing activity, the sector faces the dual headwinds of lower demand visibility and potentially constrained capital budgets. Tariff-related supply chain disruptions also pose challenges to drillers and service providers dependent on imported equipment.

Celanese Corporation, a chemicals and materials producer, also saw its stock tumble 14.40% to $37.58, amid fears of weaker industrial production in Asia and Europe. The chemical sector remains closely tied to global manufacturing cycles, and rising trade barriers could curtail both pricing power and volume growth in downstream markets.

How did American Airlines and transport stocks perform?

American Airlines Group Inc. closed down 14.48% at $9.51, joining a broader retreat in travel and transport-related equities. The airline’s performance reflects a growing concern that consumer travel demand may taper off amid economic uncertainty and rising fuel costs. Higher tariffs on aviation components and aircraft parts could also increase operating costs for carriers already battling tight margins.

While American Airlines has implemented several cost optimisation strategies since the pandemic, its exposure to international travel routes and cargo services puts it at the forefront of tariff-related risk. The sector has also been grappling with fluctuating jet fuel prices and prolonged staffing shortages, compounding the current round of investor anxiety.

Are financial and insurance stocks also under pressure?

Brighthouse Financial, Inc. saw its shares drop 12.23% to $47.29, as investors reassessed the earnings outlook for life insurance and annuity providers. Rising volatility, changing actuarial assumptions, and uncertain rate trajectories have placed pressure on insurers to deliver consistent performance. Financials more broadly have remained under pressure in 2025, amid a tug-of-war between high-interest rate benefits and slowing loan growth.

What are the long-term risks facing these companies?

Many of the April 10 market losers face a convergence of risks: persistent inflation, central bank uncertainty, supply chain vulnerabilities, and geopolitical instability. For companies like Charles River, Mobileye, and Celanese, the trade war presents a structural challenge that may not be easily resolved through short-term adjustments. Firms reliant on global distribution and outsourced production may face further downgrades if policy conditions do not stabilise.

The compounded effect of earnings revisions, tariff costs, and market sentiment shifts is likely to drive increased volatility over the coming months. As Q1 2025 earnings season progresses, investors will be watching closely for updated forecasts and executive commentary on cost management, geographic exposure, and demand sustainability.