Today’s Market ActionMajor Indexes Show Divergent Paths Amid Trade Uncertainty
U.S. stocks displayed mixed performance on Thursday, April 17, 2025, as investors navigated through corporate earnings, trade tensions, and Federal Reserve commentary. The market showed a clear divergence between the major indexes, with healthcare and tech stocks driving significant movements.
The Dow Jones Industrial Average fell 297.21 points, or 0.75%, to close at 39,372.18, primarily weighed down by UnitedHealth Group (UNH), which plummeted 23% after slashing its full-year profit forecast.
Meanwhile, the S&P 500 managed to gain 38.62 points, or 0.73%, finishing at 5,314.32, while the Nasdaq Composite edged up 42.70 points, or 0.26%, to 16,349.86.
Fed Chair’s Comments Spark Market Volatility
Market volatility continued to be influenced by Jerome Powell’s recent statements that President Trump’s tariffs could potentially slow economic growth while simultaneously increasing inflation. Powell indicated the Fed would need more time to assess the impact of these policies before making any interest rate decisions.
“All of this is highly uncertain,” Powell said on Wednesday. “We’re thinking now, really before the tariffs have their effects, about how they might affect the economy. That’s why we’re waiting really to see what the policies ultimately are, and then we can make a better assessment of what the economic effects will be.”
The uncertainty surrounding trade policy has prompted some companies to provide multiple financial forecasts. United Airlines, for example, recently gave two different outlooks for its performance this year—one assuming a recession and another assuming stable economic conditions.
Notable Stock Movements
Several individual stocks made significant moves on Thursday:
– UnitedHealth Group (UNH) suffered a dramatic 23% decline after cutting its full-year profit forecast, making it the worst performer in the Dow.
– Eli Lilly and Company (LLY) surged 15.89% following successful weight-loss drug trial results, providing a boost to the healthcare sector despite UnitedHealth’s troubles.
– Hertz Global Holdings (HTZ) was the day’s biggest gainer, jumping an impressive 45.77%, though specific catalysts for the move weren’t immediately clear.
– Nvidia Corporation (NVDA) fell 2.89% as the chip giant continues to face pressure after announcing a $5.5 billion quarterly charge related to U.S. restrictions on exporting its H20 graphics processing units to China.
– Trump Media & Technology Group (DJT) gained 12.70%, continuing its volatile trading pattern.
Upcoming Market Events
Investors should keep an eye on several key events that could impact market performance in the coming days:
1. Earnings Season Continues: The first-quarter earnings season is in full swing, with several major companies having reported today, including UnitedHealth Group (UNH), American Express (AXP), and Taiwan Semiconductor (TSM).
2. Market Closure: Markets will be closed tomorrow for Good Friday, making today the final trading day of the week.
3. Nvidia’s Upcoming Report: Nvidia (NVDA) is scheduled to report earnings on May 27, which will be closely watched given recent developments regarding export restrictions to China.
4. Economic Data: Investors will be analyzing the impact of recent retail sales data, which showed an acceleration beyond economists’ expectations, partly attributed to consumers rushing to make purchases before potential tariff-related price increases.
Trade Tensions and Global Impact
The ongoing uncertainty around President Trump’s tariff policies continues to cast a shadow over market sentiment. The World Trade Organization recently stated it expects tariffs to cause a 0.2% decline in the volume of world merchandise trade for 2025, with potential for a 1.5% contraction if conditions worsen.
International Monetary Fund Managing Director Kristalina Georgieva indicated that next week’s IMF report will include “notable markdowns” in economic growth forecasts, citing increased financial market volatility and unprecedented trade policy uncertainty.
Looking Ahead
As we head into the weekend, market participants remain cautious about the potential impacts of trade tensions and monetary policy decisions. The week is on track to end in the red, with the Dow and S&P 500 both down over 1% and the Nasdaq having dropped a deeper 2.5% since Monday.
Analysts suggest that market volatility is likely to persist until there is greater clarity on the tariff situation. As Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, noted, “Recent developments are a reminder that market swings are likely until there is greater certainty over the outlook for tariffs.”
Investors should continue to monitor earnings reports, economic data releases, and policy developments as they navigate this period of heightened uncertainty in the markets.