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Stocks Eke Out a Gain as Traders Scour Earnings: Markets Wrap

Cristin Flanagan and John Viljoen

Thu, Apr 17, 2025, 6:47 AM 5 min read

The S&P 500 rose 0.1%, with a slump in health insurers capping gains after UnitedHealth Group Inc. cut its earnings outlook for the year. The Nasdaq 100 clung to gains, rising 0.07%, following an upbeat sales forecast from Taiwan Semiconductor Manufacturing Co., the world’s biggest chipmaker. The blue-chip Dow Jones Industrial Average, on the other hand fell 1.4%, if losses hold and the broader market advances it could mark a rare divergence between stock gauges.

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There was little market reaction after Trump said Powell’s termination from his position can’t come quickly enough, arguing that the US central bank should have lowered interest rates already this year, and in any case should do so now. Powell is “always TOO LATE AND WRONG,” Trump said in a post on Truth Social.

In the bond market, short-dated Treasuries climbed while longer termed ones trimmed losses after mixed economic data. Applications for US unemployment benefits fell to the lowest level in two months, signaling a stable labor market. Meanwhile, the Philadelphia Fed Index tumbled, trailing all economists estimates, a warning shot from the manufacturing sector. A gauge of the dollar steadied.

Following the turmoil triggered by the announcement of broad US levies earlier this month, investors are focusing more on developments in country-specific trade negotiations. Key questions surround China, after Beijing indicated Wednesday it has several conditions for agreeing to talks with the Trump administration.

The ECB lowered interest rates for the seventh time since last June as global trade tensions threaten to derail the region’s economic recovery. The deposit rate was decreased by a quarter-point to 2.25%, as predicted by almost all analysts polled by Bloomberg. European stocks weakened.

On Wednesday, Powell indicated he was taking a wait-and-see approach on tariffs, pushing back on hopes the central bank would act quickly to soothe investor fears. His comments, along with concerns over the impact of levies on the tech sector, helped end a two-day consolidation in stocks.

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