The S&P 500 edged 0.1% higher on Thursday in volatile trading as investors sought to recover from recent losses, while the Dow Jones Industrial Average dropped 521 points, or 1.3%, following a steep decline in UnitedHealth Group (UNH, Financials) shares. The Nasdaq Composite slipped 0.1% after fluctuating around its flatline.
UnitedHealth weighed heavily on the Dow, falling nearly 23% after reporting adjusted first-quarter earnings of $7.20 per share on $109.58 billion in revenue, missing analyst expectations. The insurer also lowered its full-year earnings guidance, pressuring healthcare-related stocks across the board. The iShares US Healthcare Providers ETF fell more than 6%, its worst day since June 2020.
Nvidia (NVDA, Financials) shares declined another 3% after losing nearly 7% in the previous session. The chipmaker disclosed a $5.5 billion charge related to U.S. restrictions on semiconductor exports to China and other markets. Advanced Micro Devices (AMD, Financials) also slid roughly 1%.
Meanwhile, Eli Lilly (LLY, Financials) surged 16% following positive results from a late-stage trial for its oral weight-loss pill, boosting sentiment in healthcare names. Novo Nordisk (NVO, Financials) shares dropped about 9% after BMO Capital Markets downgraded the stock, citing competitive pressures from Eli Lilly.
Netflix (NFLX, Financials) gained nearly 2% ahead of its earnings report, as analysts continued to view the streaming platform as resilient to tariff-driven market risks. Shares of Netflix have risen 9.6% this year despite broader market declines.
President Donald Trump's comments that trade deals with China and the European Union could be forthcoming provided a temporary boost to equities. However, the major averages remained on track for weekly declines, with the Dow and Nasdaq each down 2% and the S&P 500 nearly 1% lower for the week. Since Trump announced plans for reciprocal tariffs on April 2, the Dow and S&P 500 have lost over 6%, while the Nasdaq has dropped about 7%.
Small-cap stocks outperformed, with the Russell 2000 index rising nearly 1% Thursday and up more than 1% for the week.
In corporate news, Alphabet (GOOGL, Financials) shares fell more than 1% after a federal judge ruled that Google unlawfully monopolized parts of the online advertising market. Shares of Alphabet are now down more than 20% year-to-date.
Global Payments (GPN, Financials) declined more than 15% after announcing a $22.7 billion acquisition of WorldPay and plans to sell its Issuer Solutions business for over $13 billion.
Raymond James downgraded Coty (COTY, Financials) to market perform from outperform, citing concerns about weaker consumer beauty demand and slower margin expansion. Coty's shares have plunged 33% this year.
Warby Parker (WRBY, Financials) received an upgrade from Loop Capital to buy from hold. The analyst noted that vision correction products are a medical necessity, positioning the retailer to outperform during economic downturns.
Elsewhere, Hertz Global Holdings (HTZ, Financials) shares surged 50% after Pershing Square increased its stake in the rental car company to nearly 20%, according to regulatory filings.
Jobless claims for the week ending April 12 totaled 215,000, slightly below economist expectations. Meanwhile, the Philadelphia Fed's manufacturing index fell sharply to -26.4 in April, reflecting deteriorating regional activity.
The European Central Bank cut its benchmark deposit facility rate by 25 basis points to 2.25%, citing weakening growth prospects due to rising trade tensions.
In Asia, markets advanced broadly on Thursday despite Wall Street's losses. Japan's Nikkei 225 rose 1.35%, and Hong Kong's Hang Seng Index added 1.61%.
The U.S. stock market will be closed Friday in observance of Good Friday.
