On Thursday, U.S. markets finished with mixed results, largely due to a significant drop in UnitedHealth, which pulled the Dow lower.
The markets responded to ongoing trade tensions and signals from the Federal Reserve that suggested interest rate cuts might not be on the horizon. The Dow Jones Industrial Average fell by 1.2%, or roughly 500 points, primarily as a result of UnitedHealth’s stock plunging 23% after the company revised its full-year profit outlook downward.
Conversely, the S&P 500 ticked up by 0.2%, buoyed by gains in specific sectors, while the Nasdaq Composite, which is heavy on technology stocks, experienced a minor decline of about 0.13%. Nvidia faced its second straight day of losses as the U.S. tightened restrictions on chip exports to China.
Trump vs. Powell
Market attention remained centered on Fed Chair Jerome Powell, who warned on Wednesday that rising tariffs could impede growth and raise inflation.
Powell remarked that the Fed would hold off on rate decisions until there is greater clarity on trade policies, dampening expectations for immediate rate cuts.
In turn, President Trump ramped up his criticism of Powell, suggesting that the Fed chair’s “termination cannot come fast enough” and reportedly naming potential successors.
Moreover, reports surfaced that Trump had spoken with former Fed governor Kevin Warsh as a possible replacement for Powell, adding to market uncertainty.
On a different note, chipmaker TSMC surpassed expectations with a remarkable 60% increase in net profit for Q1, largely attributed to AI chip demand. Investors are also eagerly anticipating Netflix’s earnings, seen as a potential bright spot for technology amid broader sector challenges.
Yields on 10-year Treasury notes rose to 4.325%, while the U.S. dollar experienced a slight uptick.
It is important to note that both stock and bond markets will be closed this Friday in observance of Good Friday.
Bitcoin (BTC) briefly surpassed $85,000 but has stabilized around $84,600 as of this report.
