Market Overview: Mixed Results Across Indexes
On Thursday, the U.S. stock market delivered mixed results as small-cap stocks led a modest rally while the Dow Jones Industrial Average dropped sharply. Despite early volatility, the Nasdaq Composite Index and S&P 500 showed signs of resilience.
- Dow Jones fell by 527 points (-1.3%), largely driven by a disappointing earnings report from UnitedHealth.
- Nasdaq ended the session marginally lower (-0.1%) after fluctuating between gains and losses.
- S&P 500 posted a slight gain of 0.1% after swinging throughout the day.
- Russell 2000, which tracks small-cap stocks, gained 0.8%, showing stronger momentum than large-cap indexes.
Crude Oil Prices Surge
Crude oil futures rose by more than 3%, hitting a session high of $64.15 per barrel. However, oil prices remain down over 11% year-to-date. Despite the rally, most energy stocks remain below key technical levels, including the 200-day moving average.
Fed Tensions: Trump Urges Powell’s Resignation
Former President Donald Trump renewed his criticism of Federal Reserve Chairman Jerome Powell, calling for his removal and pressing for interest rate cuts to stimulate the economy. Powell, however, emphasized concerns about elevated inflation and rising federal debt during a recent speech in Chicago.
Bond Market Trends
The 10-year U.S. Treasury yield rose 5 basis points to 4.33%, signaling investor uncertainty and continued bearish sentiment in the bond market.
Focus on Tariffs and Global Trade
Tariffs continue to dominate market discussions. According to Nomura, current average U.S. tariffs stand at 21%, with expectations of further increases targeting sectors such as pharmaceuticals, copper, timber, and lumber.
Energy and Oil Stocks Rally but Remain Weak
While Chevron, Hess, and other major oil firms gained ground during the session, they are still trading below key resistance levels. Chevron’s Relative Strength Rating (RSR) stands at just 34, indicating underperformance over the past year.
Health Insurers Under Pressure
UnitedHealth stock dropped significantly after missing earnings estimates, triggering sector-wide weakness. Shares plunged as much as 23%, and the company slashed its 2025 earnings guidance from $30 to as low as $26 per share. Humana and Elevance Health also experienced steep declines, weighing on the overall healthcare sector.
Top Performing Sectors
Despite broader market concerns, several industries showed strong performance:
- International Oil & Gas Exploration
- Medical-Diversified
- Truck Transportation
These sectors gained between 2% to 8%, offering potential opportunities for growth-focused investors.
Rising Indian Stocks on U.S. Markets
ICICI Bank surged over 3%, breaking out past a buy point at 31.99. Meanwhile, HDFC Bank continued its uptrend, moving beyond its breakout level of 67.12. Both banks are benefitting from strong fundamentals and bullish investor sentiment.
Chip Stocks Rebound
Taiwan Semiconductor (TSMC) saw its shares rebound on the back of strong Q1 earnings, driven by AI chip demand. Although the stock remains below its 50-day moving average, the company’s 58% profit surge shows strong momentum in the semiconductor sector.
UnitedHealth Earnings Miss and Market Impact
UnitedHealth’s earnings of $7.20 per share fell short of expectations, marking the first miss in over a decade. The company attributed the shortfall to increased costs in its Medicare Advantage program, reflecting the growing healthcare demands of retiring Baby Boomers.
