Major Indexes Show Mixed Performance Amid Healthcare Selloff
As of midday Thursday, April 17, 2025, U.S. markets are showing mixed performance following yesterday’s steep sell-off. The Dow Jones Industrial Average is down significantly, falling approximately 300 points or 0.7%, primarily dragged down by healthcare stocks. Meanwhile, the S&P 500 has managed to gain 0.6%, and the tech-heavy Nasdaq Composite is showing stronger resilience with a nearly 1% increase.
This follows Wednesday’s dramatic market decline when the Dow lost nearly 700 points, the S&P 500 dropped about 2.2%, and the Nasdaq Composite fell 3.1%. The major averages are currently headed for a losing week, with each index down more than 1% since Monday.
UnitedHealth Earnings Shock Rocks Healthcare Sector
The biggest market story today is the shocking earnings report from UnitedHealth Group (UNH), which has sent shockwaves through the healthcare sector. UnitedHealth shares have plummeted by approximately 20% after the company not only missed earnings expectations but also significantly cut its 2025 outlook.
This marks the first time in over a decade that UnitedHealth has missed profit forecasts, and the company rarely trims its forward guidance. The healthcare giant attributed the disappointing results to higher-than-expected costs related to its Medicare business, with care activity among Medicare Advantage users going “far above” 2025 expectations.
The UnitedHealth selloff has triggered a broader decline across the healthcare insurance sector, with Humana (HUM) down 10.3%, CVS Health (CVS) falling 5.1%, and Alignment Healthcare (ALHC) dropping 11.1%.
Tech Sector Rebounds on Strong Taiwan Semiconductor Results
While healthcare stocks struggle, the technology sector is showing signs of recovery after yesterday’s significant decline. Taiwan Semiconductor Manufacturing Company (TSM) reported better-than-expected results for the first quarter, sending its U.S.-listed shares up more than 3%.
This positive news has helped offset some of the negative sentiment surrounding tech stocks after Nvidia (NVDA) fell 6.9% yesterday following the disclosure of a quarterly charge of approximately $5.5 billion related to export controls on its H20 graphics processing units to China.
Key Earnings Reports Released Today
Several major companies are reporting earnings today, including:
– American Express (AXP): Expected to report Q1 earnings of $3.46 per share, representing a 3.9% increase compared to the same quarter last year.
– Charles Schwab (SCHW): Analysts expect Q1 earnings of $1.01 per share, compared to $0.74 in the year-ago period.
– Blackstone (BX): The investment management firm is expected to report Q1 earnings of $1.17 per share, up from $0.98 a year earlier.
– D.R. Horton (DHI): The homebuilder is projected to report Q2 earnings of $2.67 per share, representing a 24.15% decrease compared to the same quarter last year.
After the market close, investors will be watching for results from Netflix (NFLX), which is expected to report Q1 earnings of $5.73 per share, and Intuitive Surgical (ISRG), with projected earnings of $1.75 per share.
Tariff Concerns Continue to Weigh on Markets
Ongoing concerns about global tariffs continue to impact market sentiment. Federal Reserve Chair Jerome Powell stated yesterday that Trump’s proposed tariffs could drive up inflation in the near term and are “likely to move us further away from our goals.” Powell warned that the central bank may find itself in a “challenging scenario” balancing its dual mandate of price stability and maximum employment.
The tariff situation has created uncertainty for many companies, with British semiconductor firm Alphawave IP Group announcing today that it is unable to provide a financial forecast for 2025 due to the “rapidly developing nature” of U.S. tariffs.
Looking Ahead: Market Events to Watch
Investors should keep an eye on several upcoming events that could impact market performance:
1. March Housing Data: Set to be released later today, with economists forecasting declines in housing starts and permits.
2. Additional Fed Commentary: Markets will be watching for more statements from Federal Reserve officials following Powell’s remarks yesterday that deepened the market sell-off.
3. Netflix Earnings: The streaming giant’s report after market close will be closely watched, though the company will no longer be reporting its quarterly subscriber numbers.
4. European Central Bank (ECB) Actions: The ECB is expected to cut interest rates for the seventh time, which could influence global market sentiment and currency valuations.
As markets navigate through earnings season and ongoing tariff concerns, volatility is likely to remain elevated. Investors should stay alert to both company-specific news and broader economic indicators that could drive market direction in the coming days.