Market Midday Update: Dow Slides on UnitedHealth Plunge While Tech Attempts Recovery

Market Indexes Show Mixed Performance as Tariff Concerns Linger

As of midday Thursday, April 17, 2025, U.S. markets are showing mixed performance following Wednesday’s steep sell-off. The Dow Jones Industrial Average is down approximately 600 points (1.7%), dragged lower primarily by healthcare giant UnitedHealth (UNH). Meanwhile, the S&P 500 has pared earlier losses and is down just 0.3%, while the Nasdaq Composite has trimmed its decline to 0.7% after yesterday’s significant 3.1% drop.

Markets are attempting to stabilize after Wednesday’s broad sell-off, which saw the Dow plummet nearly 700 points while the tech-heavy Nasdaq tumbled 3.1%, bringing it to within 19% of its all-time high—dangerously close to bear market territory.

UnitedHealth Drags Down Dow as Tech Shows Signs of Recovery

The day’s biggest story is UnitedHealth Group (UNH), which has plunged approximately 22.6% after slashing its full-year profit forecast. As the largest component of the Dow by weight, UnitedHealth’s decline is single-handedly responsible for much of the blue-chip index’s underperformance today.

In contrast, the technology sector is showing signs of recovery after yesterday’s steep losses. Taiwan Semiconductor Manufacturing Company (TSM) reported strong quarterly results this morning, with revenue of NT$839.25 billion and net income of NT$361.56 billion, both exceeding analyst expectations. The company maintained its forecast of close to mid-20% revenue growth for 2025 despite tariff concerns, providing some reassurance to the tech sector.

TSM’s U.S.-listed shares are trading higher by approximately 3% following the earnings beat, with the company’s CEO C.C. Wei stating that they “have not seen any change in our customers’ behavior so far” regarding potential tariff impacts.

Fed Comments and Tariff Tensions Continue to Influence Markets

Market sentiment remains cautious following Federal Reserve Chair Jerome Powell’s comments on Wednesday that suggested Trump’s proposed tariffs could drive up inflation and potentially complicate the Fed’s dual mandate. Powell indicated the central bank may find itself in a “challenging scenario” if it needs to balance inflation control with economic growth.

Adding to market volatility, President Trump called for Powell’s “termination” in a social media post this morning, stating that Powell’s removal “cannot come fast enough.” This unexpected development has contributed to the Dow’s sharp reversal from earlier gains in futures trading.

Tech Sector Navigating Tariff Concerns

The technology sector continues to navigate uncertainties related to tariffs and export controls. Nvidia (NVDA), which fell 6.9% in Wednesday’s session after disclosing a quarterly charge of approximately $5.5 billion related to China export controls, is attempting to stabilize today.

Taiwan Semiconductor’s strong results have provided some optimism for the semiconductor sector, with analysts maintaining positive ratings despite reducing price targets. Morgan Stanley maintained its overweight rating on TSMC, noting that “AI demand remains healthy” despite tariff concerns.

Upcoming Market Events

Investors are looking ahead to several key events that could impact market direction:

1. Netflix (NFLX) is scheduled to report its Q1 earnings after today’s market close, with analysts expecting earnings per share of $5.73.

2. Several financial institutions reported earnings this morning, including State Street (STT) and Regions Financial (RF), with results generally meeting or exceeding expectations.

3. Tomorrow (Friday, April 18), Federal Reserve official Mary Daly is scheduled to deliver a speech that may provide further insights into the Fed’s thinking on interest rates and inflation.

4. Economic data releases scheduled for tomorrow include Argentina’s Leading Indicator and Consumer Confidence figures, which could provide insights into global economic conditions.

Market Outlook

As we approach the final trading hours of Thursday, investors remain cautious amid ongoing tariff concerns and mixed corporate earnings. The major averages are heading for a losing week, with the S&P 500 down 1.63% and the Nasdaq Composite down 2.5% for the week thus far.

Market participants will be closely monitoring Netflix’s earnings report after the bell today, which could influence sentiment in the technology sector heading into Friday’s trading session. Additionally, traders will be watching for any further comments from Federal Reserve officials regarding inflation expectations and potential policy responses to tariff-induced price pressures.

With the Nasdaq hovering near bear market territory and ongoing uncertainty surrounding trade policies, market volatility is likely to persist in the near term as investors assess the broader economic implications of recent developments.