Stock Market Today: Markets Closed for Good Friday as Investors Digest a Turbulent Week

Market Overview: Major Indexes End Mixed in Holiday-Shortened Week

The U.S. stock market is closed today, Friday, April 18, 2025, in observance of Good Friday, giving investors a chance to reflect on what has been another volatile trading week. Before the holiday break, major indexes showed mixed performance on Thursday, with the S&P 500 edging up 0.13% to 5,282.70 and the Nasdaq Composite slipping 0.13% to 16,286.45. The Dow Jones Industrial Average fell more significantly, dropping 1.33% to close at 39,142.23.

Despite Thursday’s modest gains for the S&P 500, all three major indexes finished the holiday-shortened week in negative territory. The Dow and S&P 500 both declined over 1.5% for the week, while the tech-heavy Nasdaq posted deeper losses of approximately 2.5%, continuing to feel pressure from ongoing trade tensions and tariff concerns.

UnitedHealth Drags Down Dow as Healthcare Sector Stumbles

The Dow’s significant underperformance on Thursday was primarily driven by UnitedHealth Group (UNH), which plummeted a staggering 22.38% after the healthcare giant slashed its full-year profit forecast due to expectations of higher medical costs for the remainder of 2025. As the largest component by weight in the Dow, UnitedHealth’s dramatic decline created substantial downward pressure on the blue-chip index.

The healthcare sector broadly suffered in sympathy, with other major insurers including CVS Health (CVS) dropping 6.1% and Humana (HUM) falling 6.4%. This sector-wide selloff offset gains in other areas of the market.

Tech Sector Faces Headwinds as Nvidia Takes China Export Hit

Technology stocks continued to face challenges, with Nvidia (NVDA) declining 2.87% after disclosing a $5.5 billion quarterly charge related to U.S. export restrictions on its H20 GPUs destined for China and other regions. This development added to existing concerns about the impact of trade tensions on the tech sector.

Other Magnificent Seven stocks showed mixed performance on Thursday, with Apple (AAPL) gaining 1.39% to $196.98, while Microsoft (MSFT) fell 1.03% to $367.78. Alphabet (GOOGL) declined 1.38%, Amazon (AMZN) dropped 0.98%, Meta Platforms (META) slipped 0.17%, and Tesla (TSLA) edged down 0.07%.

For the year so far, the Magnificent Seven stocks have struggled, with Tesla down 34.7%, Alphabet down 18.5%, and Nvidia down 18.3% through the end of March.

Bright Spots: Eli Lilly and Taiwan Semiconductor Buck the Trend

Despite the broader market challenges, some stocks delivered impressive gains. Eli Lilly (LLY) surged 14.30% after announcing positive results for its experimental weight-loss pill, orforglipron, which led to weight loss of nearly 8% and lowered blood sugar in type 2 diabetes patients. This development further strengthens Lilly’s position in the highly competitive weight-loss drug market.

Taiwan Semiconductor Manufacturing Company (TSM) also performed well, with its U.S.-listed shares gaining 2.5% following a bullish forecast driven by strong AI chip demand. This positive news provided some relief to the semiconductor sector, which has been under pressure from export restrictions and trade tensions.

Fed Comments and Tariff Concerns Continue to Shape Market Sentiment

Market sentiment remains heavily influenced by Federal Reserve Chair Jerome Powell’s recent comments warning that new tariffs introduced by President Trump could increase inflation and slow growth—a potentially challenging scenario for monetary policy. Powell indicated that the Fed might face difficult choices between fighting inflation and supporting jobs, suggesting that interest rate cuts may not be imminent as policymakers await “greater clarity” on the trade outlook.

President Trump further escalated tensions by stating in a Truth Social post that Powell’s termination “cannot come fast enough,” criticizing the Fed Chair and calling for interest rate cuts. This public disagreement between the administration and the Federal Reserve has added another layer of uncertainty for investors.

Upcoming Market Events: What to Watch Next Week

When markets reopen on Monday, April 21, investors will shift their focus to several key developments that could drive market direction:

1. **Flash PMI Data**: Flash Purchasing Managers’ Index (PMI) data for April will be released on Wednesday, providing early insights into economic conditions and sentiment changes across major developed economies following recent trade developments.

2. **Fed Comments**: Statements from Federal Reserve officials will be closely monitored for clues regarding their concerns about inflation versus growth risks amid heightened uncertainty about the path forward for interest rates.

3. **Economic Data Releases**: Key economic indicators including U.S. durable goods orders and home sales data will offer insights into March economic conditions and consumer sentiment.

4. **Earnings Season Momentum**: Several large-cap companies, particularly in the banking and technology sectors, are scheduled to release Q1 results early next week, with their guidance potentially setting the tone for the broader market.

Market Outlook: Navigating Uncertainty

As investors head into the long weekend, market sentiment remains cautious amid ongoing concerns about trade policies, inflation, and the potential for economic slowdown. The VIX, often referred to as the “fear index,” remains elevated above its 50-day moving average, though it has retreated from last week’s highs.

Traders have scaled back expectations for a May interest rate cut, with the probability now at just 13.6% according to CME’s FedWatch tool. Additionally, economists are increasingly concerned about recession risks, with a Reuters poll showing a higher probability of a U.S. recession in the next 12 months.

For investors wondering why the market is up or down today, the answer lies in this complex interplay of corporate earnings, economic data, Fed policy expectations, and trade tensions. As we move deeper into earnings season and gather more data on the impact of recent trade policies, market volatility may persist, requiring careful navigation of these uncertain waters.