Market Update: US Stocks Take a Breather on Good Friday After Volatile Week

Markets Closed Today as Investors Digest Recent Volatility

US stock markets are closed today, Friday, April 18, 2025, in observance of Good Friday. The closure gives Wall Street a much-needed breather after a volatile week dominated by disappointing earnings, ongoing tariff concerns, and warnings from Federal Reserve Chair Jerome Powell about potential economic headwinds.

Before the holiday, major indexes ended Thursday’s session mixed. The S&P 500 edged up 0.13% to close at 5,282.70, while the tech-heavy Nasdaq Composite slipped 0.13% to 16,286.45. The Dow Jones Industrial Average suffered the most significant decline, falling 1.33% to end at 39,142.23.

Despite Thursday’s modest performance, all three major indexes finished the holiday-shortened week in negative territory. The S&P 500 fell approximately 1.5%, the Nasdaq dropped 2.6%, and the Dow declined 2.7% for the week.

UnitedHealth and Nvidia Lead Market Declines

UnitedHealth Plummets on Earnings Miss

Thursday’s market action was heavily influenced by UnitedHealth Group (UNH), which experienced its worst single-day performance in over 25 years. The healthcare giant plunged more than 22% after reporting disappointing first-quarter results and slashing its full-year profit forecast. As the largest component by weight in the Dow Jones Industrial Average, UnitedHealth’s dramatic decline was responsible for most of the index’s losses.

Nvidia Continues to Struggle Amid Export Restrictions

Nvidia (NVDA) extended its losses on Thursday, falling nearly 3% after Wednesday’s 7% decline. The semiconductor giant disclosed a $5.5 billion quarterly charge related to U.S. export restrictions on its H20 GPUs destined for China and other regions. The new trade restrictions have wiped more than $250 billion from Nvidia’s market capitalization over just two days, pushing its total value below $2.5 trillion.

Bright Spots in a Challenging Market

Not all stocks suffered losses on Thursday. Hertz Global Holdings (HTZ) soared over 44% after investor Bill Ackman disclosed a significant stake in the company. Eli Lilly (LLY) jumped more than 14% following strong trial results for its experimental weight-loss medication, positioning it as a potential blockbuster in the growing obesity drug market. The Russell 2000 index of smaller companies also outperformed, rising 0.92% to 1,880.62.

Upcoming Market Events and Earnings

When markets reopen on Monday, April 21, investors will shift their focus to several key developments, including the continuation of earnings season and important economic data releases.

Banking Sector Earnings on Deck

Several financial institutions are scheduled to report their first-quarter results before the market opens on Monday. Comerica Incorporated (CMA), Bank of Hawaii Corporation (BOH), Dynex Capital (DX), HBT Financial (HBT), Capital City Bank Group (CCBG), Washington Trust Bancorp (WASH), and Guaranty Bancshares (GNTY) will all release their earnings reports. These results could provide valuable insights into the health of the banking sector and broader economic conditions.

Economic Data and Fed Policy in Focus

Investors will also be closely monitoring upcoming economic reports on inflation, consumer sentiment, and manufacturing activity, which could influence expectations around interest rates and Federal Reserve policy. Fed Chair Jerome Powell’s recent comments that Trump’s tariffs could “generate at least a temporary rise in inflation” and create a “challenging scenario” for the central bank have added to market uncertainty.

Tariff Concerns Continue to Weigh on Markets

The ongoing implementation of tariffs by the Trump administration remains a significant concern for investors. The World Trade Organization has warned that these tariffs will send international trade into reverse this year and depress global economic growth. While the WTO had previously expected goods trade to expand by 2.7% in 2025, it now forecasts a 0.2% decline.

European Central Bank President Christine Lagarde also pointed to rising global trade tensions, particularly U.S. tariffs, as a major drag on euro-area growth. “Anybody in this room who thinks that we are in a shock-free world, would I suggest maybe raise their hands or have their head examined either way,” she remarked. “We are not in a shock-free world, that’s for sure.”

Market Outlook and Trading Schedule

Following today’s Good Friday closure, U.S. markets will reopen on Monday, April 21, 2025, with regular trading hours:

– Pre-market trading: 4:00 a.m. – 9:30 a.m. ET
– Regular trading session: 9:30 a.m. – 4:00 p.m. ET
– After-hours trading: 4:00 p.m. – 8:00 p.m. ET

As investors return from the long weekend, market participants will be watching for any major headlines over the weekend that could spark volatility when trading resumes. Geopolitical developments, particularly related to global trade negotiations, could significantly impact market sentiment in the coming week.

With earnings season gaining momentum and ongoing concerns about tariffs and inflation, market volatility is likely to persist as investors navigate these challenging economic conditions.