Investing.com-- U.S. stocks traded in a mixed fashion Thursday, with investors digesting more corporate earnings as well as President Donald Trump’s criticism of Fed Chair Jerome Powell.
At 10:15 ET (14:15 GMT), the Dow Jones Industrial Average fell 430 points, or 1.1%, while the S&P 500 index gained 16 points, or 0.3%, and the NASDAQ Composite climbed 10 points, or 0.1%.
The tech-heavy Nasdaq Composite and the broad-based S&P 500 index have made something of a rebound Thursday after significant losses Wednesday, driven by tech weakness after chipmaking giant Nvidia (NASDAQ:NVDA) disclosed a hefty quarterly charge.
The DJIA, on the other hand, has been hit hard by a sharp drop in Unitedhealth (NYSE:UNH), after an earnings miss.
The major U.S. indexes are all heading for a weekly decline, with the Nasdaq Composite very close to bear market territory.
Unitedhealth cuts profit forecast
There were more quarterly corporate earnings to digest Thursday, headlined by hefty losses by Unitedhealth, the largest U.S. health insurance company. Its stock dropped 19% after the health insurer cut its annual profit forecast in anticipation of higher-than-expected medical costs.
Elsewhere, Eli Lilly (NYSE:LLY) stock rose 16% after the drugmaker disclosed positive Phase 3 trial results for orforglipron, a pioneering oral medication for type 2 diabetes.
Blackstone (NYSE:BX) stock rose 2% after the asset manager reported a higher-than-expected profit for the first quarter, driven by proceeds from asset sales across its private equity and credit businesses.
Taiwan Semiconductor Manufacturing (NYSE:TSM) stock rose 2% after the world’s largest contract chipmaker posted a 60% jump in first-quarter net profit, helped by surging demand for semiconductors used in artificial intelligence applications.
Trade negotiations show progress
Away from the corporate sector, U.S. President Donald Trump declared "big progress" in negotiations with Japan in Washington, raising optimism that there could be negotiated settlements between the U.S. and its major trading partners over tariffs, avoiding an all-out global trade war.
Japan was the first major trading partner to negotiate directly with the United States, and could be seen as a test case for the many countries reportedly seeking better terms on these U.S. tariffs.
European Commission President Ursula von der Leyen has indicated that she wants “to give negotiations a chance”, while Bloomberg reported on Wednesday that China is open to beginning trade talks with the Trump administration, but is demanding that the White House show more respect and stem disparaging remarks about its cabinet members.
Trump criticizes Powell, again
Fed Chair Powell on Wednesday said that the Fed was not inclined to cut interest rates in the near future, citing the inflationary pressures and economic uncertainties introduced by the new tariffs.
"Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem," Powell said in prepared remarks at the Economic Club of Chicago.
This cautious stance has prompted criticism from Trump, with the president suggesting that his termination from the position should be expedited. Trump’s comments, shared on his Truth Social platform Thursday, indicate his belief that the U.S. central bank should have already lowered interest rates this year, and should do so immediately.
Trump referred to Powell as "Too Late" in his post, stating that "Powell’s termination cannot come fast enough!"
Powell’s term as chair is set to continue until May 2026, and his term as a governor is expected to last until February 2028. Trump’s recent criticism of the Fed echoes the sentiments he expressed during his first term as president.
The number of Americans filing new applications for unemployment benefits fell last week, suggesting labor market conditions remained stable in April, while U.S. single-family homebuilding plunged to an eight-month low in March.
Crude heads for weekly gains
Oil prices rose Thursday, on course for weekly gains, driven by supply disruption concerns after the U.S. imposed new sanctions on Iran’s oil exports.
At 10:15 ET, Brent futures climbed 1.5% to $66.83 a barrel, and U.S. West Texas Intermediate crude futures rose 1.7% to $63.54 a barrel.
Both benchmarks closed at their highest levels for two weeks on Wednesday, and are on track for their first weekly rise in three.
President Donald Trump’s administration escalated its sanctions against Iran’s oil sector by targeting Chinese entities, including a refinery in Shandong province.
(Ayushman Ojha contributed to this article.)
