U.S. Stocks Close Mixed Amid UnitedHealth Dip and Fed Signals

U.S. stocks ended on a mixed note Thursday, with the Dow Jones Industrial Average dropping significantly due to sharp declines in UnitedHealth shares. Investors closely monitored ongoing trade tensions and recent comments from the Federal Reserve, which indicated that interest rate cuts may not be on the horizon.

Market Performance Overview

The Dow Jones Industrial Average fell by 1.2%, equivalent to a drop of approximately 500 points. The decline was primarily driven by a steep 23% plunge in UnitedHealth shares after the company reduced its full-year profit outlook.

Meanwhile, the S&P 500 managed to rise 0.2%, supported by gains in specific sectors. On the other hand, the Nasdaq Composite experienced a slight decline of 0.13%. Notably, Nvidia shares dipped for the second consecutive day following the U.S. government’s expanded restrictions on chip exports to China.

Federal Reserve and Trade Tensions

Federal Reserve Chair Jerome Powell remained a focal point for market participants. Powell warned that escalating tariffs could slow economic growth and contribute to higher inflation. He emphasized that the Fed would take a cautious approach, waiting for greater clarity on trade policies before making any interest rate decisions. This stance has lowered investor expectations for imminent rate cuts.

President Trump responded by intensifying his criticism of Powell, suggesting that the Fed Chair’s tenure should end sooner rather than later. Reports also surfaced that Trump had discussed the possibility of replacing Powell with former Federal Reserve Governor Kevin Warsh, adding further uncertainty to the market outlook.

Sector Highlights

Among individual stocks, chipmaker TSMC reported a stronger-than-expected 60% surge in Q1 net profits, driven by the rising demand for AI chips. Meanwhile, investors looked forward to Netflix’s earnings report, which is anticipated to provide a rare boost to the technology sector amid broader market challenges.

Bond Yields and Currency Movements

Yields on the 10-year Treasury climbed to 4.325%, reflecting increased investor caution. The U.S. dollar also recorded a modest uptick, further influencing market dynamics.

Bitcoin Price Update

Bitcoin showed mixed performance, briefly trading above $85,000 before settling in the $84,600 range as of the latest update. The cryptocurrency market continues to attract attention, especially as financial markets remain volatile.

It’s worth noting that U.S. stock and bond markets will remain closed on Friday in observance of Good Friday, potentially leading to a quieter trading environment.

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