S&P 500 and Nasdaq Rise as UnitedHealth Sinks the Dow/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. markets opened mostly higher Thursday, with the S&P 500 and Nasdaq seeing gains fueled by tech and pharmaceutical stocks. However, a steep drop in UnitedHealth shares weighed heavily on the Dow Jones Industrial Average. Investors remained cautious amid ongoing trade war uncertainty and mixed economic signals.
Stock Market Snapshot – Key Points
- S&P 500 rose 0.2%, Nasdaq up 0.1%, while the Dow dropped 522 points.
- UnitedHealth’s 17% plunge weighed down the Dow after weak earnings.
- Taiwan Semiconductor stock rose 2.8% following solid quarterly results.
- Eli Lilly soared 13.6% after positive trial data for an obesity drug.
- Trump signals progress on trade talks, but tariff uncertainty remains.
- Fed Chair Powell reiterates concerns over long-term tariff effects.
- Trump criticized Powell again, raising concerns about Fed independence.
- Treasury yields remained steady; 10-year yield dipped to 4.28%.
- U.S. economic data showed a resilient labor market, but manufacturing slipped.
- European markets fell despite ECB rate cut; Asian markets posted gains.
Wall Street Opens Mixed as Tech Rebounds, UnitedHealth Slumps
DEEP LOOKS
NEW YORK (AP) — Wall Street saw a mixed open Thursday, with most major indexes ticking higher to close out a holiday-shortened trading week. Gains in technology and pharmaceutical sectors helped lift the broader market, even as a sharp drop in UnitedHealth Group shares weighed heavily on the Dow Jones Industrial Average.
- The S&P 500 rose 0.2%,
- The Nasdaq composite edged up 0.1%,
- The Dow Jones Industrial Average fell 522 points, or 1.3%.
UnitedHealth Misses Forecasts, Sinks Dow
The Dow’s decline was driven largely by a 16.9% slide in UnitedHealth, after the health care giant missed Wall Street’s earnings and revenue estimates. The company also slashed its full-year forecast, citing unexpectedly high usage of outpatient and Medicare Advantage services by customers.
“We underestimated the volume of care being accessed by our members,” UnitedHealth said in its report.
The drop was significant enough to offset broader market gains and stirred fresh concerns about health sector stability.
Tech Stocks Rally on TSMC Report
Technology shares rebounded after Taiwan Semiconductor Manufacturing Co. (TSMC) reported earnings that matched expectations. The chipmaker also stated it had not seen reduced customer demand due to tariffs—news that brought relief to a tech sector jittery over trade war risks.
“While we have not seen any changes in our customers’ behavior so far, uncertainties and risks from the potential impact from tariff policies exist,” said TSMC CFO Wendell Huang.
TSMC’s U.S.-traded shares rose 2.8%, helping boost the Nasdaq.
Eli Lilly Jumps on Drug Development News
Eli Lilly stock soared 13.6% after the pharmaceutical giant announced promising clinical results for a once-daily pill aimed at treating obesity and diabetes. The news gave investors another reason to bet on the company’s growing pipeline of weight loss and metabolic therapies.
Trade Policy Uncertainty Still Clouding Market
President Donald Trump offered more optimistic rhetoric Thursday about ongoing trade negotiations, which Wall Street has closely followed. He cited productive discussions with Mexico, Japan, and other nations.
“Had a very productive call with the President of Mexico yesterday… Every nation, including China, wants to meet,” Trump posted on Truth Social.
However, investors remain wary of Trump’s tariff flip-flopping, which has led to volatility and uncertainty over global supply chains and pricing.
Powell Reiterates Caution Over Tariffs
Federal Reserve Chair Jerome Powell reaffirmed on Wednesday that Trump’s tariffs may be larger and more damaging than previously expected. The central bank is holding off on interest rate changes while monitoring the situation.
“The Fed will wait for greater clarity before acting,” Powell said, signaling patience on future rate moves.
Trump, however, sharply criticized the Fed again Thursday.
“The Fed is always TOO LATE AND WRONG,” Trump posted. “Powell’s termination cannot come fast enough!”
Such rhetoric raises concerns about Fed independence, a core principle that has underpinned global investor confidence in U.S. financial markets.
Bond Market and Economic Indicators
In the bond market, the 10-year Treasury yield dipped slightly to 4.28% from 4.29%, reflecting cautious optimism from bond traders.
Economic data released Thursday painted a mixed picture:
- Unemployment claims came in lower than expected, suggesting continued labor market strength.
- Manufacturing data from the Mid-Atlantic region unexpectedly turned negative, signaling slowing industrial activity.
Global Market Overview
European stocks declined, even after the European Central Bank cut its benchmark interest rate. The move was widely expected and already priced into markets.
In Asia, stock markets posted solid gains:
- Hong Kong climbed 1.6%,
- Japan rose 1.3%.
The gains followed high-level trade talks in Washington involving Trump, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick, who met with a Japanese trade delegation.
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