U.S. stock markets saw mixed results on Thursday as traders tried to recoup sharp losses from the previous day. S&P 500 futures rose by 0.3%, and the Nasdaq-100 advanced 0.6%. However, Dow futures tumbled by 510 points, or 1.3%, heavily influenced by a significant decline in UnitedHealth shares.
UnitedHealth’s stock plummeted more than 19% after disappointing first-quarter results.
Dow Jones Stock Markets: Dow, Nasdaq, S&P 500 fall sharply; Nvidia worst-hit; Top 3 reasonshttps://t.co/ZEb4ZN4Pgf
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The company reported adjusted earnings of $7.20 per share on revenues of $109.58 billion, which fell short of analyst expectations. In contrast, Eli Lilly’s shares surged 11% premarket following positive trial results for a new weight-loss drug.
Q: Is there a Fed put for the stock market?
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The company announced that their Type 2 diabetes oral treatment, orforglipron, also aids in weight loss, showing an average loss of 16 pounds over 40 weeks in a phase three trial. Hertz’s shares soared nearly 16%, continuing gains from the previous session. On Wednesday, the stock had skyrocketed more than 56% after Bill Ackman’s Pershing Square disclosed a substantial stake in the rental car company.
The Philadelphia Fed manufacturing index dropped sharply in April, down to -26.4 from 12.5 in March. Economists had expected a reading of 3.5. This steep decline reflects a significant decrease in general manufacturing activity within the region.
Dow tumbles amid mixed market results
Jobless claims for the week ending April 12 totaled 215,000, which was below the 225,000 expected by economists. This report came amid ongoing investor concerns about the impact of U.S. tariffs on the economy. The European Central Bank cut interest rates, bringing the deposit facility rate to 2.25%.
This move, driven by rising trade tensions, signifies a decline from mid-2023 highs and highlights the deteriorating growth outlook in the euro area. Asia-Pacific markets rose on Thursday, diverging from Wall Street’s decline. Hong Kong’s Hang Seng index increased by 1.61%, while Japan’s Nikkei and South Korea’s Kospi also experienced gains.
As the week draws to a close, major U.S. indexes are headed for a decline. Both the S&P 500 and Dow Jones have slid over 1%, while the Nasdaq has fallen 2.5%. The market remains closed on Friday in observance of Good Friday.
Chris Zaccarelli, Chief Investment Officer of Northlight Asset Management, commented on Federal Reserve Chair Jerome Powell’s recent statements, noting that while Powell downplayed immediate opposition between employment and stable prices goals, investor nerves were clearly rattled. This has heightened fears of a possible recession and stagflation. As the markets continue to react to mixed corporate earnings, economic data, and global trade tensions, investors brace for ongoing volatility.
Image Credits: Photo by Annie Spratt on Unsplash
