Wall Street is drifting between gains and losses Thursday as UnitedHealth Group’s stock plunges toward its worst drop in more than a quarter century, while most of the rest of the US stock market ticks higher.
The S&P 500 was up 0.7% in its final day of trading in a holiday-shortened week. The Dow Jones Industrial Average was down 287 points, or 0.7%, as of 1:02 p.m. Eastern time, and the Nasdaq composite was 0.2% higher.
UnitedHealth was the heaviest force dragging on the market, and its stock tumbled 21.9% toward its worst day since 1998.
The health care giant reported profit and revenue for the latest quarter that fell short of analysts’ expectations, and it also slashed its forecast for financial results this year. It was surprised by how much care its Medicare Advantage customers were getting from doctors and outpatient services, which was above the company’s expectations.
Another high-profile stock, Nvidia, also dragged on the market after sinking a second straight day following its disclosure that new export limits on chips to China could hurt its first-quarter results by $5.5 billion. It sank 2.8% and was the second-heaviest weight on the S&P 500.
But a wide majority of stocks across Wall Street were nevertheless rising, including more than four out of every five within the S&P 500 index. Technology stocks held steadier following their sell-off from the day before after global heavyweight Taiwan Semiconductor Manufacturing Co. reported a profit for the latest quarter that matched analysts’ expectations.
Perhaps more importantly, it also said it hasn’t seen a drop-off in activity from its customers because of President Donald Trump’s trade war, as some other companies have suggested.
Still, the company known as TSMC was cautious. “While we have not seen any changes in our customers’ behavior so far, uncertainties and risks from the potential impact from tariff policies exist,” Chief Financial Officer Wendell Huang said. TSMC’s stock that trades in the United States rose 1.1%.
Eli Lilly was another winner after the drugmaker reported encouraging results for a once-daily pill that could help treat people with obesity and diabetes. Its stock jumped 15.9%.
Exxon Mobil rose 3.7%, and ConocoPhillips rallied 4.2% as oil prices rose to recover some of their sharp losses taken this month amid worries that the trade war could hurt the global economy.
Meanwhile, the US bond market remained relatively calm after last week’s volatility, which had stirred fears over waning global confidence in US assets amid escalating trade tensions.
Global stock markets moved in divergent directions on Thursday as investors weighed a looming interest rate cut by the European Central Bank against escalating tensions between US President Donald Trump and Federal Reserve Chairman Jerome Powell.
European indices declined in midday trading, pulling back from earlier gains in Asia. London’s FTSE 100 was down 0.7 percent at 8,218.19, Paris’ CAC 40 slipped 0.8 percent to 7,268.90, and Frankfurt’s DAX dropped 0.6 percent to 21,178.14.
In contrast, Asian markets closed mostly higher, buoyed by optimism surrounding Japan-US trade talks. Tokyo’s Nikkei 225 surged 1.4 percent to 34,377.60, the Hang Seng Index in Hong Kong rose 1.6 percent to 21,395.14, and Shanghai’s Composite Index edged up 0.1 percent to 3,280.34.
Meanwhile, safe-haven gold hit a new record above $3,357.78 an ounce, while oil prices and the US dollar posted modest gains. Brent crude rose 1.0 percent to $66.51 per barrel and West Texas Intermediate increased 1.2 percent to $62.55.
Market sentiment remained cautious as President Trump renewed criticism of Fed Chairman Powell, accusing him of failing to match the ECB’s monetary easing and calling for his dismissal. Trump’s comments followed Powell’s warning that the administration’s broad-based tariffs could leave the central bank with difficult choices between curbing inflation and preserving employment.
The warning, along with chipmaker Nvidia’s disclosure of mounting costs from the ongoing US-China trade war, triggered a sharp selloff on Wall Street. The Dow Jones Industrial Average closed down 1.7 percent at 39,669.39.
Trump responded Thursday by slamming Powell’s leadership, stating his “termination cannot come fast enough.”
Attention is now firmly on the ECB, which is widely expected to lower interest rates in response to economic uncertainty stoked by protectionist trade policies and slowing global growth.
Investors are also monitoring developments in Washington, where governments are scrambling to secure trade agreements before Trump’s recently announced tariffs — delayed for 90 days — come into effect. On social media, the president said there had been “Big Progress!” in talks with Japanese officials, a sentiment echoed by Tokyo’s envoy Ryosei Akazawa.
Japan’s Prime Minister Shigeru Ishiba acknowledged the complexity of the negotiations but reaffirmed both sides’ urgency to reach a resolution.
S&P 500 gains even as Dow drops on healthcare and chip sector woes
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