Wall Street rocked: Over 25 major stocks plunge as oil, tech and healthcare hit turbulence

April 4, 2025, delivered one of the steepest equity market pullbacks of the year, with a broad swath of US-listed companies witnessing double-digit declines. From energy producers and digital tech firms to health services and renewables, the day’s slump spanned across sectors, sparking renewed concern about the resilience of corporate earnings amid economic and policy uncertainty. The rout, which affected more than two dozen stocks, came against a backdrop of falling crude prices, rising Treasury yields, and investor concerns that the Federal Reserve may delay interest rate cuts in the face of still-sticky inflation and persistent global headwinds.

Stocks such as Patterson-UTI Energy, Kanzhun Limited, Civitas Resources, AppLovin Corporation, and GE HealthCare Technologies were among the most impacted. However, the depth of the decline extended well beyond these names, pointing to a broad shift in investor sentiment as markets reassess valuations and sector risk exposure heading into the second quarter of 2025.

Which energy stocks led the decline, and what is weighing on the oil sector?

The most pronounced losses on April 4 were concentrated in the energy sector. Patterson-UTI Energy, Inc. dropped over 18% to $5.66, making it the worst-performing stock of the day. Civitas Resources, Inc. also tumbled by more than 17% to $24.28, while Comstock Resources, Inc. followed closely with a 16.65% decline. Other oil and gas names including Ovintiv Inc., APA Corporation, California Resources Corporation, TechnipFMC plc, and Valaris Limited saw declines ranging between 13% and 15%.

This broad retreat was triggered by a significant dip in oil prices, largely attributed to rising US inventories and weaker-than-expected demand from China, the world’s second-largest crude consumer. Brent crude futures dropped below $80 per barrel during the week, sparking fears that the oil market is tipping into oversupply territory. Compounding these pressures are investor concerns about OPEC+’s ability to maintain output discipline, as well as doubts over whether current price levels can sustain drilling activity, particularly among North American shale producers.

Historically, energy stocks are highly sensitive to commodity price fluctuations, and the April 4 performance underscored this dynamic. The fact that oilfield service providers such as TechnipFMC and Patterson-UTI saw double-digit drops indicates investor unease about the durability of capital expenditure plans in the upstream segment.

Are tech and AI-related companies entering a correction phase?

Technology and AI-linked stocks, many of which had rallied in the first quarter, came under heavy selling pressure on April 4. AppLovin Corporation dropped 16.26% to $219.37 as investors pulled back from high-growth adtech plays amid valuation concerns and rising interest rates. ZoomInfo Technologies Inc. also slumped by 14.33% to $7.53 as doubts grew about customer acquisition trends in the B2B SaaS space.

Chinese tech names trading in the US also came under intense pressure. Kanzhun Limited, which operates the job-matching platform Boss Zhipin, sank by 18.28% to $15.42, likely reflecting investor concerns over China’s persistent youth unemployment and sluggish white-collar hiring. Bilibili Inc. declined by 13.49%, while Futu Holdings Limited, an online brokerage, lost 14.34%, dragged down by increased regulatory scrutiny and weakening consumer demand in Asia.

The declines point to a potential revaluation underway in the tech space, especially for firms that had been bid up based on AI-led growth narratives. As investors grow more selective, there is increasing scrutiny on profitability, customer retention, and the actual monetization of AI technologies.

What role did rising bond yields and Fed policy play in the sell-off?

Underlying much of April 4’s stock market volatility was a significant shift in expectations regarding the Federal Reserve’s monetary policy path. Recent data showing continued strength in the labor market and services inflation has cast doubt on the likelihood of a near-term rate cut. As a result, bond yields rose sharply, with the 10-year Treasury yield surpassing 4.35%—its highest level in over a month.

Higher yields tend to reduce the relative appeal of equities, particularly those in high-growth sectors like tech and renewables, which rely on future cash flows. The shift in rate expectations also lifted the US dollar, putting pressure on internationally exposed companies and US exporters alike. The resulting rotation out of duration-sensitive stocks further fueled the day’s downward momentum.

Historically, periods of rapidly rising yields have corresponded with broader market corrections, particularly when economic data is mixed and inflation remains a concern. The April 4 retreat echoed previous episodes where equity investors reassess risk and reset expectations for both valuation multiples and earnings growth.

Which other sectors and companies were caught in the sell-off?

The healthcare sector also took a notable hit. GE HealthCare Technologies Inc. dropped nearly 16% to $60.51 after issuing guidance that fell short of investor expectations. Slowing capital expenditure from hospital systems, regulatory uncertainty around reimbursement, and ongoing inflation in supply costs have added pressure across the medical technology segment. Telix Pharmaceuticals Limited and Zai Lab Limited also registered declines exceeding 13%.

In the aviation and industrial sectors, FTAI Aviation Ltd. shed 15.35%, with analysts citing concern over delayed aircraft deliveries and rising financing costs. Rolls-Royce Holdings plc fell 15.82%, potentially reflecting repositioning by investors after a strong multi-quarter rally. Meanwhile, Bloom Energy Corporation dropped 14.17% as alternative energy stocks continued to struggle with capital intensity and competitive pricing pressures.

Other names facing steep declines included California Resources Corporation, Woodside Energy Group Ltd, Matador Resources Company, Antero Resources Corporation, and IAMGOLD Corporation. These firms were affected either by commodity pricing shifts, capital market volatility, or in the case of IAMGOLD, operational risk concerns tied to project execution.

What does this mean for investors as Q2 earnings season approaches?

With more than two dozen US-listed stocks losing over 13% in a single day, April 4 marks a key inflection point as Wall Street enters the second quarter. While some sectors such as AI, energy, and biotech had been top performers earlier in 2025, the latest correction shows that investor sentiment remains fragile and highly responsive to macroeconomic developments.

The coming weeks will be crucial as companies begin reporting earnings. Investors will be looking for guidance that not only addresses top-line growth but also outlines how firms plan to manage cost pressures, navigate supply chain volatility, and maintain margins in an environment of high interest rates and muted global growth.

There is also growing concern that US consumer resilience could weaken in the months ahead. With savings rates down, credit card balances rising, and wage growth slowing, consumer-linked tech and discretionary stocks may come under pressure if spending begins to contract.

Ultimately, April 4’s sell-off was a reminder that while optimism around themes like AI, energy independence, and healthcare innovation remains strong, markets are now entering a phase where delivery will matter more than promise. Companies that cannot show robust fundamentals may face heightened volatility—especially in an environment where monetary policy remains restrictive, and global growth faces structural headwinds.