Stocks wrapped a volatile shortened trading week with mixed performances on Thursday as a sharp sell-off in UnitedHealth dragged the Dow deep into the red. The blue-chip index fell 1.3%, or more than 500 points, while the S&P 500 managed a narrow 0.1% gain. The Nasdaq Composite slipped 0.1%, adding to Wednesday’s tech-led downturn.

All three major indexes closed the week lower. The Dow and Nasdaq both dropped more than 2.5%, and the S&P shed roughly 1.5%. Markets are closed Friday in observance of Good Friday, with trading resuming Monday.

Market Movers:

  • UnitedHealth (UNH) -22.38%: UnitedHealth shares plunged more than 22% after the healthcare giant slashed its full-year profit forecast. The company’s size and weight in the Dow amplified the index’s losses, making it the biggest drag of the day. Concerns over rising medical costs and reimbursement rates triggered a broad sell-off in the health insurance space.
  • Netflix (NFLX) +1.19%: Netflix climbed slightly after topping Wall Street estimates for first-quarter earnings and revenue. The streaming giant also issued upbeat second-quarter guidance, projecting earnings per share of $7.03—well above analyst forecasts—on expected revenue of $11.04 billion.
  • Eli Lilly (LLY) +14.3%: Shares soared after announcing strong clinical trial results for its experimental diabetes and weight-loss pill, orforglipron. The drug showed an average weight loss of 7.9% and improved blood sugar levels, prompting analysts to raise their price targets and tout it as a “next-gen” blockbuster in the GLP-1 drug class.

Trump vs. Powell

President Trump reignited tensions with Federal Reserve Chair Jerome Powell, taking to social media and the press to call for Powell’s removal and criticize his handling of interest rates. Trump’s verbal assault followed Powell’s warning that tariffs could worsen inflation and hinder economic growth. The Fed chair dismissed the idea of an imminent rate cut, saying the central bank will “wait for greater clarity” on trade policy.

Trump’s threats to fire Powell, despite lacking the legal authority, added a layer of political risk to an already on edge market. Investors are now weighing how these escalating tensions could impact the Fed’s decision-making in the months ahead.

Cautious Tone on Wall Street as Growth Outlook Dims

Strategists’ optimism is flattening as concerns grow over slowing economic growth and inflated earnings estimates. Truist downgraded US equities to “less attractive,” citing weakening fundamentals and overextended valuations. Meanwhile, Trivariate Research’s Adam Parker predicted earnings would grow just 1% this year, far below the current 9% consensus.

With the ongoing tariff war and the Fed signaling caution, some analysts believe the market hasn’t fully priced in the risk of a recession. If earnings expectations continue to fall, further market weakness could follow.

Looking Ahead

Investors will return from the long weekend with a lot to consider. Key earnings from tech giants and economic indicators such as GDP growth and inflation will drive sentiment. Market participants will also be watching for any signs of movement on trade talks—or more volatility sparked by Trump's ongoing feud with the Fed. With downside risks mounting, bulls may face an uphill battle heading into the final stretch of April.