Markets mixed: tech gains, health sector falls
Published: 06:04 PM,Apr 17,2025 | EDITED : 10:04 PM,Apr 17,2025
Investors will closely watch upcoming global tariff negotiations for clarity on scope and impact.— Reuters
NEW YORK: Futures tied to the S&P 500 and the Nasdaq regained some ground on Thursday on the final trading day of the week, with focus on US-Japan tariff talks, while UnitedHealth's shares fell sharply following a forecast cut by the insurer.
US President Donald Trump said the country had made 'big progress' in talks with Japan, one of the first rounds of face-to-face negotiations since his sweeping imposition of duties on global imports roiled markets and stoked recession fears.
Investors will be closely watching all negotiation talks with dozens of countries over the coming weeks for more clarity on the size and scope of tariffs on individual nations and sectors.
Meanwhile, UnitedHealth plummeted 19% after lowering its annual profit forecast on expectations of high medical costs for the remainder of the year. The stock weighed heavily on futures tied to the blue-chip Dow. Other health insurers also fell, with CVS Health down 9.1%, Centene losing 8.7% and Humana shedding 15%.
Additionally, upbeat results from Taiwan Semiconductor Manufacturing Co (TSMC) helped US chip stocks recover to some extent. Semiconductor shares had tumbled in the previous session after Nvidia flagged steep costs from new curbs on its AI chip exports to China. TSMC's US-listed shares jumped 3% in premarket trading, while Nvidia rose 0.5% after falling nearly 7% on Wednesday.
However, highlighting the sector's challenges, Intel lost 1.6% after a report the company will need a licence to sell some of its advanced artificial intelligence chips to China.
At 06:34 a.m., Dow E-minis were down 376 points, or 0.94%, S&P 500 E-minis were up 29 points, or 0.55%, and Nasdaq 100 E-minis were up 170.5 points, or 0.93%.
Later, US Federal Reserve Chair Jerome Powell warned Trump’s tariff policies risked pushing inflation higher while weakening economic growth, adding policymakers needed more clarity before adjusting policy.
Traders scaled back bets of a May interest rate cut, now pricing in just a 15.6% chance of a 25-basis point reduction from over 27% a week earlier, according to CME's FedWatch.— Reuters
US President Donald Trump said the country had made 'big progress' in talks with Japan, one of the first rounds of face-to-face negotiations since his sweeping imposition of duties on global imports roiled markets and stoked recession fears.
Investors will be closely watching all negotiation talks with dozens of countries over the coming weeks for more clarity on the size and scope of tariffs on individual nations and sectors.
Meanwhile, UnitedHealth plummeted 19% after lowering its annual profit forecast on expectations of high medical costs for the remainder of the year. The stock weighed heavily on futures tied to the blue-chip Dow. Other health insurers also fell, with CVS Health down 9.1%, Centene losing 8.7% and Humana shedding 15%.
Additionally, upbeat results from Taiwan Semiconductor Manufacturing Co (TSMC) helped US chip stocks recover to some extent. Semiconductor shares had tumbled in the previous session after Nvidia flagged steep costs from new curbs on its AI chip exports to China. TSMC's US-listed shares jumped 3% in premarket trading, while Nvidia rose 0.5% after falling nearly 7% on Wednesday.
However, highlighting the sector's challenges, Intel lost 1.6% after a report the company will need a licence to sell some of its advanced artificial intelligence chips to China.
At 06:34 a.m., Dow E-minis were down 376 points, or 0.94%, S&P 500 E-minis were up 29 points, or 0.55%, and Nasdaq 100 E-minis were up 170.5 points, or 0.93%.
Later, US Federal Reserve Chair Jerome Powell warned Trump’s tariff policies risked pushing inflation higher while weakening economic growth, adding policymakers needed more clarity before adjusting policy.
Traders scaled back bets of a May interest rate cut, now pricing in just a 15.6% chance of a 25-basis point reduction from over 27% a week earlier, according to CME's FedWatch.— Reuters