S&P 500, Nasdaq Composite and Dow Jones opened Thursday higher. It was the last trading day for the week.
Dow Jones Industrial Average posted a sharp decline due to a major drop at UnitedHealth.
UnitedHealth has the highest weighting in the Dow Jones Industrial Average.
S&P 500 gained 0.4% while Nasdaq added 0.4%.
UnitedHealth, which reported earnings that were below estimates and cut guidance, tumbled 17 percent, causing the Dow to fall 463 points or 1.2%.
The forecast for 2025 has been revised to an adjusted range between $26 and $26.50 per share, down from its previous expectation of $29.50 – $30 per share.
According to LSEG data, analysts had expected a profit per share of 29.73 dollars for 2025.
Netflix will report its first-quarter results after the closing bell on Thursday
Markets were closed for Good Friday, which means that the major indexes will have a down week.
Dow, S&P 500, and Nasdaq have all fallen by more than 2% each, and around 1.2% respectively.
Wednesday’s steep decline
The sharp drop in stock prices on Wednesday was largely due to heavy losses among technology companies.
The Dow Jones Industrial Average dropped nearly 700 points while the Nasdaq Composite fell more than 3%.
Nvidia was the leader in declines with a drop of nearly 7% after revealing a quarterly charge of $5.5 billion related to US Export Restrictions on H20 GPUs for China and other countries.
The markets were also influenced by remarks from Federal Reserve chair Jerome Powell who said that Trump’s trade tariffs would likely push inflation up in the near term, and “move us away from our goal.”
Powell said the Fed may face “challenging scenarios” when managing its dual mandate to maintain stable prices while maximizing employment.
Trump and Powell fight again
On Thursday, President Donald Trump renewed his calls for the Federal Reserve Chair Jerome Powell to be removed and suggested that the Federal Reserve could reduce interest rates.
Powell made the remarks after his speech to the Economic Club of Chicago. Powell said that the Fed was facing a tough balancing act, as the tariffs implemented by the Administration complicated the decisions about controlling inflation and supporting the economy.
Powell, who contributed to Wednesday’s sharp stock market decline, said: “We would then consider the distance the economy has to travel to reach each of these goals, as well as the different time frames over which we might expect those gaps to be closed.”
Powell’s policies have been criticized by Trump repeatedly.
In a letter written earlier this month by Trump, just two days following the announcement of “Liberation Day”, he wrote that it was “the perfect time” for Fed chairman Jerome Powell, to lower interest rates. He’s always “late,” but now he can change his image quickly.
The post US Stocks Open Mixed: S&P, Nasdaq and Dow drop 400 Points may change as new information is released.
This site is for entertainment only. Click here to read more
