The stock market experienced a turbulent trading session on Thursday, with major indexes closing mixed amid ongoing trade uncertainties and President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell. The S&P 500 managed to eke out a slight gain of 0.13%, ending at 5,282.70, despite fluctuating between gains and losses throughout the day. However, the Dow Jones Industrial Average dropped significantly by 527.16 points, or 1.33%, closing at 39,142.23.
The tech-heavy Nasdaq Composite also slipped by 0.13% to finish at 16,286.45. The declines marked the third consecutive day of losses for both the Dow and the Nasdaq. Notable declines heavily influenced market performance in key stocks.
UnitedHealth saw a significant drop of 22%, while Nvidia retreated nearly 3% on Thursday, adding to its almost 7% plunge from the previous session. Nvidia’s decline followed the disclosure of a $5.5 billion quarterly charge related to U.S. export controls on its H20 graphics processing units. Despite the downward pressure from these major stocks, several others provided positive momentum.
Eli Lilly surged by 14% after positive results for its weight-loss pill, and shares of Netflix gained 1% ahead of its earnings report.
UnitedHealth sees significant stock drop
President Trump’s comments briefly buoyed investor sentiment on Thursday afternoon when he expressed optimism about reaching trade deals with China and the European Union.
However, these remarks came a day after Federal Reserve Chair Jerome Powell warned that Trump’s tariff policies could cause complications for the central bank. “Trade policy uncertainty is literally off the charts,” remarked Kristalina Georgieva, the International Monetary Fund’s managing director, in a speech shortly after. Overall, the major averages posted losses for the week, which concluded with Thursday’s close due to the market being closed for Good Friday.
The Dow and Nasdaq each fell more than 2% for the week, while the S&P 500 declined by 1.5%. This market is looking for direction amid ongoing trade uncertainties,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. “Investors are waiting to see what happens with these trade deals.”
In other developments, Raymond James downgraded Coty to a market perform rating from outperform, citing headwinds such as challenging comps in Prestige Fragrance and weaknesses in Consumer Beauty.
Coty’s shares have plunged 33% this year. Small-cap stocks outperformed the broader market this week, with the small-cap-focused index rising by nearly 1% on Thursday and gaining more than 1% for the week. US stock and bond markets will be closed on Friday for Good Friday.
Trading will resume on Monday at 9:30 a.m. Many international markets, including those in the UK, Australia, and Hong Kong, will also remain closed on Monday.
Image Credits: Photo by Behnam Norouzi on Unsplash
