Massive losses hit Wall Street: Here’s why these 25 stocks plunged on April 11 amid recession alarm bells

The U.S. stock market witnessed a broad-based decline on April 11, 2025, as investors reacted sharply to renewed inflation fears and signals from the Federal Reserve suggesting slower economic growth ahead. Despite modest gains in the major indices, the day was marked by significant drops in individual equities across diverse sectors including technology, healthcare, logistics, consumer goods, and education. With inflation expectations spiking and consumer sentiment plunging, investors shed riskier assets, dragging down both small-cap and large-cap names.

The release of the University of Michigan’s preliminary Consumer Sentiment Index for April revealed a reading of 50.8, one of the lowest in decades, with one-year inflation expectations jumping to 6.7%—a level not seen since the early 1980s. At the same time, top Federal Reserve officials projected economic growth falling below 1% in 2025, alongside a potential rise in unemployment to as high as 5%, deepening fears of a stagflationary environment. These macroeconomic developments cast a long shadow over the equity markets, intensifying pressure on companies already navigating operational headwinds.

Which stocks were the biggest losers and what drove their declines?

Among the most severely affected was New Oriental Education & Technology Group, which saw its stock plummet 60% to $4.00. The dramatic drop came amid continued investor unease about regulatory restrictions affecting Chinese education firms. The company, once a mainstay in China’s booming edtech scene, has seen its market value steadily eroded due to crackdowns on for-profit tutoring services and geopolitical tensions impacting U.S.-listed Chinese firms.

MicroAlgo Inc. followed with an 11.94% drop to $14.01. The AI software firm has suffered from intense volatility in recent months, with speculative trades pushing the stock to unsustainable highs before reversing. MicroAlgo’s market cap now stands at just under $140 million, down over 70% from its 52-week peak, a reflection of how vulnerable small-cap tech firms remain in a high-interest-rate environment.

Also notable was Option Care Health, Inc., which fell 6.35% to $31.55. The company, focused on infusion therapy services, faces a complex reimbursement landscape and increasing costs tied to staffing shortages. Its drop underscored challenges across the broader healthcare services space, especially for firms heavily reliant on insurance billing and clinical labor.

What happened in the technology and semiconductor sectors?

Semiconductor and optical networking stocks faced renewed downward pressure, with Texas Instruments Incorporated declining 5.75% to $147.60. The company had recently guided to softer demand across its key segments, particularly in industrial and automotive, both of which are experiencing inventory corrections. As a bellwether for chip stocks, the selloff in Texas Instruments raised concerns about the broader health of the sector.

Lumentum Holdings Inc. also saw a steep 5.87% decline, closing at $51.27. The company, which provides laser components for telecom and 3D sensing, has struggled with soft enterprise demand and overcapacity. Similarly, Nutanix, Inc., which dropped 4.42% to $59.30, has faced pressure from slowing enterprise software investments amid tighter IT budgets. Braze, Inc., a customer engagement platform, fell 4.44% to $29.03, continuing a broader trend of devaluation for high-growth but unprofitable SaaS players.

Even high-performing names were not immune. AppLovin Corporation, despite posting stellar growth earlier in the year, declined 5.26% to $249.95 as investors locked in profits. AppLovin is still up over 249% year-to-date, but its fall reflects nervousness over advertising cyclicality and the sustainability of mobile app monetization revenues in a potential downturn.

How did logistics and transport stocks fare during the selloff?

Transport and logistics names were heavily represented among the day’s top decliners. Saia, Inc. dropped 6% to $330.37, with concerns over declining shipping volumes, rising diesel prices, and union wage pressures weighing on sentiment. The company, a key player in less-than-truckload freight, is seen as a proxy for U.S. industrial activity, and its sharp drop signaled growing fears of slowing business investment.

XPO, Inc. also fell 3.61% to $93.78, impacted by many of the same pressures. Additionally, Full Truck Alliance Co. Ltd., a Chinese freight platform, lost 5.47% to end at $9.67. The logistics technology sector has been struggling with lower demand visibility and geopolitical overhangs affecting cross-border trade platforms.

Were consumer and retail-focused companies also affected?

Consumer discretionary names were not spared. Bath & Body Works, Inc. declined 3.55% to $26.64 and Urban Outfitters, Inc. dropped 3.45% to $46.75. Both companies reported slowing consumer traffic and elevated promotional activity. The retreat in their share prices suggests that U.S. households may be tightening spending amid economic uncertainty and persistent inflationary pressures.

Sweetgreen, Inc., a fast-casual health food chain, slid 3.88% to $21.08. The company, which has positioned itself as a premium wellness brand, could face margin compression as higher wage and ingredient costs collide with cautious consumer behavior.

How did international equities and ADRs respond?

Several foreign-listed firms trading as American Depository Receipts (ADRs) faced substantial pressure. In addition to New Oriental’s collapse, TAL Education Group fell 3.61% to $9.60. Atour Lifestyle Holdings Limited, another Chinese consumer company, dropped 3.73% to $22.21, pointing to broad-based investor skepticism toward Chinese equities listed in the U.S.

Oatly Group AB, the Swedish alternative dairy company, continued its extended decline with a 3.76% drop to $8.95. Despite attempts to scale production and reposition its brand, Oatly remains deeply unprofitable, with its stock now more than 50% off year-to-date.

What signals are central banks sending to markets?

Comments from Federal Reserve officials added to the bearish tone. New York Fed President John Williams forecasted a potential increase in unemployment to between 4.5% and 5% in 2025, alongside sub-1% GDP growth. He noted that the latest inflation data, compounded by recently imposed tariffs, could force the Fed to maintain a tighter policy stance for longer than previously anticipated.

St. Louis Fed President Alberto Musalem echoed similar concerns, warning of deteriorating business investment trends and highlighting that higher inflation risks are becoming embedded in consumer expectations. Their assessments led to a shift in market sentiment, with traders now pricing in fewer rate cuts this year, if any.

Is this a short-term correction or the beginning of a broader downturn?

Despite a rebound in the broader indices—where the S&P 500 rose 1.8% and the Nasdaq added 2.1%—the magnitude and breadth of April 11’s individual stock losses suggest more than just a short-term blip. The S&P 500 remains down 8.8% for the year, while the Nasdaq has dropped 13.4%. This divergence between index-level performance and stock-level pain reflects a market increasingly driven by macro fears, rotational uncertainty, and tactical de-risking.

Small-cap and growth-oriented stocks have borne the brunt of recent corrections, especially in sectors exposed to discretionary spending, software budgets, or long-term capital investment. With inflation expectations rising and consumer sentiment eroding, the probability of a more sustained market drawdown cannot be ruled out.