Today’s Midday Market Update: Markets Mixed as Holiday Trading Thins Volume
Major Indexes Show Mixed Performance Amid Holiday Trading
As of midday on Friday, April 18, 2025, U.S. markets are showing mixed performance in thin trading volume due to the Good Friday holiday. While the U.S. stock market is technically open today, many traders are absent ahead of the Easter weekend, resulting in lower-than-average trading volumes.
The S&P 500 is up marginally by 0.13% to 5,282.70, attempting to recover from recent losses. The tech-heavy Nasdaq Composite is down slightly by 0.13% to 16,286.45, continuing its struggle after entering near bear market territory earlier this week. Meanwhile, the Dow Jones Industrial Average is experiencing more significant pressure, down 1.33% to 39,142.23, largely dragged down by healthcare stocks.
This mixed performance comes after a volatile trading week dominated by concerns over global tariffs and their potential impact on inflation and economic growth. For the week, the major indexes are heading for losses, with the S&P 500 down approximately 1.63%, the Nasdaq Composite falling 2.5%, and the Dow Jones Industrial Average declining 1.35%.
Healthcare and Tech Stocks Drive Major Moves
The healthcare sector is experiencing significant volatility today, with contrasting performances from major players. UnitedHealth Group (UNH) continues its dramatic decline, plummeting 22.38% after yesterday’s disappointing earnings report and lowered annual profit forecast due to higher-than-expected medical costs.
In stark contrast, pharmaceutical giant Eli Lilly (LLY) is surging 14.30% after announcing promising results for its experimental weight loss pill, orforglipron. The drug showed impressive results in type 2 diabetes patients, leading to weight loss of nearly 8% while also lowering blood sugar levels.
In the technology sector, Nvidia (NVDA) is down 2.87% as investors continue to digest the company’s disclosure earlier this week about a $5.5 billion quarterly charge related to export restrictions on its H20 graphics processing units to China.
Tesla (TSLA) is showing resilience today after recent declines, with the stock up slightly as it attempts to recover from being down approximately 50% from its December 2024 all-time high.
Upcoming Market Events and Economic Indicators
Looking ahead to next week, investors will be closely monitoring several key economic events and corporate earnings releases that could impact market direction.
Netflix (NFLX) is scheduled to report its quarterly earnings after today’s market close, which could provide insights into the streaming sector’s health and consumer spending patterns.
The economic calendar for next week includes several important data releases that could influence Federal Reserve policy decisions. With markets closed in several countries today for Good Friday, including the UK, Australia, and parts of Europe, global trading activity is expected to resume fully on Monday.
Earnings season will continue to ramp up, with several major companies scheduled to report results in the coming weeks. Analysts at FactSet estimate a year-over-year earnings growth rate of 7.3% for S&P 500 companies, which would mark the seventh consecutive quarter of earnings growth.
Trade Tensions and Federal Reserve Outlook
Market sentiment remains cautious as investors continue to assess the potential impact of President Trump’s tariff policies. Federal Reserve Chair Jerome Powell’s recent comments have added to market uncertainty, as he warned that tariffs could drive up inflation in the near term and potentially move the economy “further away from our goals.”
The Fed may find itself in a challenging scenario where its dual mandate goals of controlling inflation and supporting economic growth come into conflict. This has led traders to scale back expectations for interest rate cuts, with the probability of a May rate cut now at just 13.6%, according to CME’s FedWatch tool.
Global Markets and Currency Movements
Asian markets showed resilience on Thursday, breaking ranks with Wall Street’s decline. Hong Kong’s Hang Seng Index increased 1.61%, Japan’s Nikkei 225 rose 1.35%, and South Korea’s Kospi gained 0.94%. This divergence suggests that global markets are responding differently to the current trade tensions and economic outlook.
In currency markets, the U.S. dollar has strengthened as the Federal Reserve signals patience regarding interest rate cuts. This comes as investors increasingly seek safe-haven assets amid growing economic uncertainty.
As we head into the weekend, market participants will be closely watching for any developments in U.S.-Japan trade talks, which President Trump has described as making “big progress.” The outcome of these negotiations could provide insights into the administration’s broader approach to international trade relations and potentially impact market sentiment when trading resumes next week.
