Asian stocks opened in green, however, remain cautious following a weekly decline in U.S. equities driven by disappointment over Jerome Powell’s resistance to the notion of the Federal Reserve backing the markets.
Futures for Japan’s equity index suggested modest gains at the open, with Nikkei 225 gained 146 points to 34,523.67, whereas Hong Kong futures Kospi trading flat, with several other regional markets closed for holidays.
Meanwhile, China’s Shanghai Composite opened in red, down marginally to 3,279.74 on April 18.
US stock market
The S&P 500 edged up by 0.13% to close at 5,282.70 on Thursday (April 17) after a choppy trading session. However, the index still finished the holiday-shortened week in negative territory due to ongoing tariff concerns.
The Nasdaq Composite slipped 0.13% to 16,286.45, while the Dow Jones Industrial Average fell 527.16 points, or 1.33%, ending at 39,142.23. The Dow’s sharp drop was primarily attributed to a 22% plunge in UnitedHealth shares following disappointing earnings.
Nvidia also dragged the broader market lower, declining nearly 3% on Thursday after a 7% drop the previous day, as it disclosed a $5.5 billion quarterly charge tied to U.S. export restrictions on its H20 GPUs to China and other nations.
Despite the downward pressure from UnitedHealth and Nvidia, gains in other major stocks helped cushion the losses—Eli Lilly jumped 14% after positive trial results for its weight-loss drug, while Netflix rose 1% ahead of its earnings report.
Investor sentiment took a hit on Wednesday after Federal Reserve Chair Jerome Powell signaled a cautious, wait-and-see stance regarding the trade war’s effect on inflation, dampening expectations for immediate policy action. On Thursday, President Donald Trump criticized Powell on social media, saying his removal couldn’t come soon enough and arguing that the Fed should have already cut interest rates this year. He later told reporters he has the authority to oust Powell if he chooses to.
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First Published
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18 Apr 2025, 05:58 AM IST
