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US stocks were mixed Thursday after a rough session the day before, as investors eyed potential progress on trade talks and President Trump lashed out at Fed Chair Jerome Powell after his stark picture of the economy under tariffs.
The Dow Jones Industrial Average (^DJI) fell 1.2%, or about 500 points. The benchmark S&P 500 (^GSPC) rose 0.4%, and the tech-heavy Nasdaq Composite (^IXIC) hovered near the flatline after Wednesday’s tech-led sell-off.
Shares of UnitedHealth (UNH) tanked as much as 22% in early trading, dragging the Dow lower, after the health insurer cut its full-year profit forecast. UnitedHealth is the largest Dow component by weight.
Nasdaq GIDS – Free Realtime Quote USD
As of 11:22:47 AM EDT. Market Open.
^IXIC ^DJI ^GSPC
Stocks slid on Wednesday as Powell, speaking in Chicago, issued his starkest warning yet on how tariffs could affect the US economy. The Fed chair said the central bank would likely face a “challenging scenario” considering he expects the levies to exacerbate inflation and slow economic growth.
Read more: The latest on Trump’s tariffs
Powell also threw cold water on hopes the central bank would imminently slash interest rates as tariffs roll in, saying Fed officials will “wait for greater clarity” on Trump’s trade policy.
Before and after Powell spoke, Nvidia (NVDA) shares tanked on news that the chip giant would face new curbs from the US government on sales to China. Shares were flat on Thursday.
Wall Street’s corporate focus will turn to Netflix’s (NFLX) quarterly earnings report, which is set for release after the bell. With Big Tech unsettled by Trump’s tariffs, the streaming giant has emerged as a rare bright spot among the group, and investors hold high hopes for its results.
Meanwhile, TSMC (TSM) reported a 60% surge in first quarter net profit on Thursday, topping forecasts as booming demand for chips used in AI applications drove strong growth at the world’s largest contract chipmaker.
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‘Tariff free’ cars are being advertised at dealerships. But for how long?
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American Express results signal premium customers continue to spend
American Express (AXP) first quarter results signal the credit card company’s affluent customers continue to spend, despite economic uncertainty over tariffs.
“Our performance across key areas, including card member spending, customer retention, demand for our premium products and credit performance, continued to be strong across our customer base, consistent with and in many cases better than what we saw in 2024,” Amex chairman and CEO Stephen Squeri said in the company’s press release.
Amex’s profit rose 6% to $2.58 billion for the first quarter, or $3.64 per share, versus estimates for $3.48. Revenue came in at $16.96 billion versus expectations for $16.95 billion.
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S&P 500, Nasdaq rebound, Dow weighed by UnitedHealth shares
US stocks were mixed on Thursday as the major averages were coming off a steep sell-off in the prior session, sparked by comments from Fed Chair Jerome Powell.
The Jones Industrial Average (^DJI) fell 1.1%, or over 500 points, weighed by shares of UnitedHealth (UNH). The benchmark S&P 500 (^GSPC) gained 0.4%, and the tech-heavy Nasdaq Composite (^IXIC) ticked up 0.6%.
Shares of UnitedHealth (UNH) tanked as much as 19% in early trading, dragging the Dow lower, after the health insurer cut its full-year profit forecast.
Fed Chair Jerome Powell on Wednesday hinted the Fed will hold off on any policy moves in order to gain more clarity about the impact of President Trump’s tariffs on the economy
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A note on why the Dow is sinking today…
UnitedHealth Group (UNH) shares are getting hammered in premarket trading after the insurer cut its profit outlook. And as the chart below shows, UnitedHealth is the largest holding in Dow Jones Industrial Average (^DJI) by weight.
Which helps explain why futures on the Dow lost 500 points (down 1.3%, at last check), even as Nasdaq and S&P 500 futures gained.
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Housing starts slide in March as builders pull back amid rising costs and trade uncertainty
Residential construction declined in March as builders reduced the number of projects launched during a critical spring housing season.
Housing starts fell 11.4% from the previous month to a seasonally adjusted annual pace of 1.324 million units, according to data from the Census Bureau released Thursday. That fell below the median estimate of economists surveyed by Bloomberg, who expected an annualized 1.42 million pace. Single-family housing starts dropped 14.2 % at a seasonally adjusted annual pace of 940,000.
March’s decline comes as builders try to navigate a complex landscape, which has been made uncertain due to unresolved trade policies with Canada, Mexico, and China. This uncertainty has weighed down builders’ outlook this year.
Builders have cited rising costs for building materials due to tariffs. Data from the National Association of Home Builders found that 60% of builders said their suppliers have already hiked prices or are planning to increase them due to trade levies.
Meanwhile, building permits gained 1.6% from a month earlier to an annualized rate of 1.482 million. At the same time, mortgage rates remain unstable, with some metrics showing rates approaching 7%, highlighting the ongoing challenges prospective buyers face.
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Weekly jobless claims fall below estimates, continuing claims rise
Weekly jobless claims fell last week while continuing claims rose, according to Labor Department data released on Thursday morning
For the week ending April 12, weekly jobless claims came in at 215,000, lower than the median expectation of 225,000.
Meanwhile, continuing claims for the week ending April 5 rose by 41,000 to 1.88 million, higher than the 1.87 million expected.
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Trending tickers in premarket trading: UnitedHealth, Eli Lilly, Hertz, TSMC
Here are some of the top trending tickers to watch in today’s trading:
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Trump says ‘Too Late’ Jerome Powell of the Fed should lower rates
President Trump took to social media on Thursday to criticize the Federal Reserve and its chair, Jerome Powell, for not cutting interest rates soon enough.
Trump said the European Central Bank is expected to cut interest rates for the seventh time, “yet ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!'”
Trump went on to write: “Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!”
During a speech in Chicago on Wednesday, Powell said that the central bank will “wait for greater clarity” before considering any interest rate adjustments. He warned of the “challenging” impacts of the tariff uncertainty, which has gripped the economy and markets in recent weeks.
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Good morning. Here’s what’s happening today.
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Gold pauses record-breaking rally as market ponders trade talks
Gold (GC=F) paused its record-breaking rally amid optimism over US-Japan trade talks, after bullion earlier reached another all-time high.
The precious metal edged lower to trade around $3,325 an ounce, after its biggest one-day gain in two years on Wednesday. That jump came on dollar weakness and as Federal Reserve Chief Jerome Powell signaled a wait-and-see approach to tariffs, pushing back on hopes the central bank would act quickly to soothe investor fears.
The precious metal has climbed almost 27% this year — matching the gain it notched in 2024 — as US President Donald Trump’s escalating trade war creates anxiety over a possible global recession. That uncertainty is benefiting gold, said Nicholas Frappell, global head of institutional market at ABC Refinery based in Sydney.
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Dollar clings to gains but heads for fourth straight weekly loss
The dollar (DX=F) attempted a rebound Thursday ahead of the Easter break but remained set for a fourth straight weekly loss as tariff turmoil dented confidence.
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TSMC profit soars 60% for Q1, beating expectations
Reuters reports:
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Oil moves toward weekly rise on US sanctions against Iran
Crude prices climbed higher late Wednesday as the US rolled out fresh sanctions aimed at choking off Iranian oil exports. The move stoked supply concerns as several OPEC members signalled additional production cuts to offset recent overproduction, reinforcing expectations of a tighter global market ahead.
Reuters reports:
