Stock indexes decline due to weakness in health insurers and chip makers.

From Nasdaq: 2025-04-17 13:20:00

Stock indexes saw a decline today, with the S&P 500 down -0.08%, the Dow Jones down -1.59%, and Nasdaq 100 down -0.26%. The drop was attributed to weakness in health insurance and chip stocks, with UnitedHealth Group slumping more than -21% and Nvidia falling -4%.

Initial US-Japan trade talks boosted stocks today, with President Trump signaling progress in negotiations. Weekly jobless claims hit a 2-month low, leading to gains. However, US housing starts fell -11.4%, while building permits rose unexpectedly.

US weekly initial unemployment claims dropped -9,000 to 215,000, defying expectations of an increase. March housing starts fell -11.4%, but building permits rose unexpectedly by +1.6%. The US Apr Philadelphia Fed business outlook survey plummeted to a 2-year low of -26.4.

New York Fed President Williams believes the US economy is strong, indicating no imminent rate changes. Market odds for a -25 bp rate cut after the May FOMC meeting are low at 14%. Q1 earnings growth for S&P 500 stocks is expected to be +6.7%, down from initial forecasts.

Overseas markets showed mixed results, with the Euro Stoxx 50 down -0.85%, Shanghai Composite up +0.13%, and Nikkei Stock 225 rising +1.35%. Recent tariff developments included exemptions on consumer electronics and a 90-day delay on reciprocal tariffs between the US and other nations.

The ECB cut rates by -25 bp, citing deteriorating growth outlooks due to trade tensions. ECB President Lagarde mentioned increased downside risks to economic growth. Swaps indicate a high chance of another -25 bp rate cut by the ECB in June. European bond yields are moving lower.

Energy producers saw gains today, with WTI crude prices up over +1%. Diamondback Energy surged +4%, while Eli Lilly rose +13% after positive trial results. Fidelity National Information gained +6% from a stake sale. Notable losers include Global Payments down -16% and QXO Inc falling -8%.



Read more at Nasdaq: Stocks Pressured by Weakness in Health Insurers and Chip Makers