Highlights
Stocks ended narrowly mixed Thursday with the Dow lagging on a selloff in UnitedHealth following disappointing quarterly results. The broader market was bolstered by positive comments from President Trump on trade talks. The Dow Jones industrial average lost 1.3 percent, the S&P 500 firmed 0.1 percent and the Nasdaq was down 0.1 percent. Bond yields and oil prices rose while the dollar was mixed versus major currencies.
President Trump's morning threat to fire Federal Reserve Chair Jerome Powell was an early negative for market sentiment as an independent central bank is a prerequisite for investors to own US assets. The Wall Street Journal reported in the afternoon that the president believes he has the authority to fire Powell and has been considering doing so but has not decided how to proceed. Such an action is likely to be litigated up to the Supreme Court. Trump reportedly told reporters in the Oval office on Thursday,"If I want him out, he'll be out of there real fast, believe me."
Concern over tariffs remains front of mind for market participants. It was somewhat positive for markets that President Trump said he expects to be able to reach trade agreements soon with China, Japan and with the European Union, alongside Treasury Secretary Scott Bessent's comment that the US is giving priority to trade talks with about 15 trading partners including the EU and Japan.
More steep losses for Nvidia on Thursday on top of Wednesday's drop weighed on the Nasdaq. Many other megacaps were flat to weaker. Among other stocks in focus, Netflix gained ahead of its earnings release and Eli Lilly rallied on news of positive clinical results for its weight loss pill.
President Trump's morning threat to fire Federal Reserve Chair Jerome Powell was an early negative for market sentiment as an independent central bank is a prerequisite for investors to own US assets. The Wall Street Journal reported in the afternoon that the president believes he has the authority to fire Powell and has been considering doing so but has not decided how to proceed. Such an action is likely to be litigated up to the Supreme Court. Trump reportedly told reporters in the Oval office on Thursday,"If I want him out, he'll be out of there real fast, believe me."
Concern over tariffs remains front of mind for market participants. It was somewhat positive for markets that President Trump said he expects to be able to reach trade agreements soon with China, Japan and with the European Union, alongside Treasury Secretary Scott Bessent's comment that the US is giving priority to trade talks with about 15 trading partners including the EU and Japan.
More steep losses for Nvidia on Thursday on top of Wednesday's drop weighed on the Nasdaq. Many other megacaps were flat to weaker. Among other stocks in focus, Netflix gained ahead of its earnings release and Eli Lilly rallied on news of positive clinical results for its weight loss pill.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
