(Bloomberg) — US stocks edged higher as traders pore through the latest batch of earnings reports, trying to gauge the impact of President Donald Trump’s tariff offensive.
The S&P 500 rose 0.1%, with a slump in health insurers capping gains after UnitedHealth Group Inc. cut its earnings outlook for the year. The Nasdaq 100 clung to gains, rising 0.07%, following an upbeat sales forecast from Taiwan Semiconductor Manufacturing Co., the world’s biggest chipmaker. The blue-chip Dow Jones Industrial Average, on the other hand fell 1.4%, if losses hold and the broader market advances it could mark a rare divergence between stock gauges.
There was little market reaction after Trump said Powell’s termination from his position can’t come quickly enough, arguing that the US central bank should have lowered interest rates already this year, and in any case should do so now. Powell is “always TOO LATE AND WRONG,” Trump said in a post on Truth Social.
In the bond market, short-dated Treasuries climbed while longer termed ones trimmed losses after mixed economic data. Applications for US unemployment benefits fell to the lowest level in two months, signaling a stable labor market. Meanwhile, the Philadelphia Fed Index tumbled, trailing all economists estimates, a warning shot from the manufacturing sector. A gauge of the dollar steadied.
Following the turmoil triggered by the announcement of broad US levies earlier this month, investors are focusing more on developments in country-specific trade negotiations. Key questions surround China, after Beijing indicated Wednesday it has several conditions for agreeing to talks with the Trump administration.
The ECB lowered interest rates for the seventh time since last June as global trade tensions threaten to derail the region’s economic recovery. The deposit rate was decreased by a quarter-point to 2.25%, as predicted by almost all analysts polled by Bloomberg. European stocks weakened.
On Wednesday, Powell indicated he was taking a wait-and-see approach on tariffs, pushing back on hopes the central bank would act quickly to soothe investor fears. His comments, along with concerns over the impact of levies on the tech sector, helped end a two-day consolidation in stocks.
“The only ‘Fed put’ that the Fed could envisage is if there was a risk of market dislocation, which is not the case at the moment,” said Enguerrand Artaz, a fund manager at La Financière de l’Echiquier. “When you look at the data, there is no need to intervene. Markets going down is not a reason in itself to intervene, especially not at these levels of valuation.”
In earnings news, UnitedHealth Group Inc. plunged after the company cut its earnings outlook for the year and reported first-quarter earnings below estimates. Shares in other health insurers tumbled.
TSMC’s US-listed shares rose after the main chipmaker for Nvidia Corp. and Apple Inc. forecast sales for the second quarter that beat analyst estimates.
Elsewhere, Eli Lilly & Co. soared on positive data from a weight-loss pill study.
On the trade front, the US and Japan kicked off negotiations with an aim to reach a deal as soon as possible, top Japan negotiator Ryosei Akazawa said. Preparations are underway for a second round of discussions later this month, he said.
Countries are racing to negotiate deals with the US to avert high import taxes Trump imposed — and then quickly paused — on about 60 trading partners. That move put a 24% across-the-board tariff on Japanese imports on hold, though a 10% baseline charge still applies — as well as 25% levies on cars, steel and aluminum.
“The trajectory of US-Japan trade talks will continue to be closely monitored, not just for their bilateral implications, but also as a potential framework for how the US may approach trade relationships with other allies,” said Rajeev De Mello, a global macro portfolio manager at Gama Asset Management.
In commodities, gold hit a record earlier Thursday on demand for havens, before turning lower as risk sentiment improved. Oil rose for a second day after the US vowed to reduce Iran’s energy exports to zero.
Some of the main moves in markets:
Stocks
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The S&P 500 rose 0.2% as of 9:46 a.m. New York time
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The Nasdaq 100 was little changed
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The Dow Jones Industrial Average fell 1.4%
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The Stoxx Europe 600 fell 0.3%
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The MSCI World Index rose 0.2%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro fell 0.3% to $1.1360
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The British pound was little changed at $1.3251
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The Japanese yen fell 0.2% to 142.18 per dollar
Cryptocurrencies
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Bitcoin rose 0.1% to $84,405.89
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Ether rose 1.2% to $1,591.88
Bonds
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The yield on 10-year Treasuries was little changed at 4.28%
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Germany’s 10-year yield declined four basis points to 2.47%
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Britain’s 10-year yield declined five basis points to 4.55%
Commodities
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West Texas Intermediate crude rose 1.1% to $63.15 a barrel
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Spot gold fell 0.5% to $3,325.46 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Aya Wagatsuma, Julien Ponthus, Anand Krishnamoorthy and Allegra Catelli.
©2025 Bloomberg L.P.
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