S&P 500 and Nasdaq Rise Amid Tariff Talk Focus

The S&P 500 and Nasdaq experienced gains on Thursday during the week’s final trading session, with attention directed toward U.S.-Japan tariff discussions. However, a downturn in UnitedHealth’s stock, triggered by the insurer’s revised forecast, exerted downward pressure on the Dow.

Following significant declines on Wednesday, investor sentiment was somewhat lifted by U.S. President Donald Trump’s remarks regarding “substantial progress” in trade negotiations with Japan.

The market’s attention will be centered on upcoming negotiation sessions with numerous nations in the coming weeks, seeking greater clarity regarding the scope and magnitude of tariffs imposed on specific countries and industries.

Concurrently, UnitedHealth’s shares plummeted by 17.2% following a downward adjustment to its annual profit outlook, citing anticipations of elevated medical expenses for the remainder of the year.

Other healthcare insurers also saw declines, with CVS Health decreasing by 6.1% and Humana falling by 6.4%.

As of 9:35 a.m. ET, the Dow Jones Industrial Average had decreased by 517.74 points, or 1.31%, reaching 39,151.65. The S&P 500, on the other hand, increased by 9.48 points, or 0.18%, to 5,285.18, while the Nasdaq Composite rose by 17.33 points, or 0.09%, to 16,324.63.

Healthcare stocks spearheaded sectoral declines, although these losses were partially offset by a 13% surge in Eli Lilly’s value. The pharmaceutical firm announced that its experimental drug, orforglipron, resulted in nearly 8% weight loss and decreased blood sugar levels in individuals with type 2 diabetes.

The CBOE Volatility Index experienced a decrease from its recent highs of the previous week but remained significantly elevated above its 50-day moving average, last declining by 1.22 points to 31.42.

Recent data indicated that weekly jobless claims were lower than anticipated, implying that the labor market remains robust.

Market Sentiment and Economic Outlook

According to Ross Bramwell, market strategist at Homrich Berg, uncertainty remains regarding the extent to which President Trump will allow the market to decline in pursuit of his objectives. Until greater clarity emerges, he anticipates continued market volatility.

Indexes had previously extended losses on Wednesday following U.S. Federal Reserve Chair Jerome Powell’s warning that President Trump’s trade policies carried the risk of escalating inflation while simultaneously weakening economic growth. Powell added that policymakers required further clarity before making policy adjustments.

President Trump responded on Thursday via a Truth Social post, asserting that Powell’s dismissal “cannot come fast enough” and advocating for interest rate cuts by the U.S. central bank.

Traders have lowered expectations for a May rate cut to 13.6%, according to CME’s FedWatch. Moreover, a Reuters survey revealed that economists foresee a heightened likelihood of a U.S. recession within the next 12 months.

As the long weekend approaches, all three major Wall Street indexes are poised to conclude the week with losses. The S&P 500 is currently on track to decline by approximately 1.6% after experiencing its strongest week since November 2023.

Positive results from Taiwan Semiconductor Manufacturing Co (TSMC) provided some relief for the chip sector following Nvidia’s announcement of substantial costs associated with new U.S. export restrictions. TSMC’s U.S.-listed shares increased by 2.5%.

Netflix is scheduled to release its earnings report after the market closes.

Advancing stocks outnumbered declining ones by a ratio of 2.58 to 1 on the NYSE and 1.88 to 1 on the Nasdaq.

The S&P 500 registered no new 52-week highs and two new lows, while the Nasdaq Composite reported nine new highs and 39 new lows.