Stock Market Update: S&P 500, Small Caps Gain Amid Trump’s Fed Criticism; Oil Prices Surge 3%

Markets showed mixed momentum on Thursday as small-cap stocks led modest gains, while the Dow Jones Industrial Average posted significant losses. Despite political uncertainty and volatile economic data, the S&P 500 edged higher and crude oil prices soared 3%, reflecting renewed investor interest in the energy sector.

Dow Jones Drops as UnitedHealth Misses Earnings Forecasts

The Dow Jones opened over 600 points lower, largely due to disappointing results from UnitedHealth. Although blue-chip stocks managed to pare some losses, the index still closed 527 points down, a decline of 1.3% for the session.

S&P 500, Nasdaq, and Russell 2000 Show Resilience

• The Nasdaq Composite saw fluctuations throughout the day, gaining as much as 0.5% before ending down by 0.1%.

• The S&P 500 finished the day up 0.1%, holding steady ahead of the Good Friday market closure.

• Small caps on the Russell 2000 Index outperformed, rising 0.8%, though still trading far below the 200-day moving average.

Trump Calls for Powell’s Removal Over Interest Rate Policy

Former President Donald Trump renewed his criticism of Federal Reserve Chair Jerome Powell, demanding a rate cut to support economic growth. Powell, however, has maintained a cautious stance due to persistent inflation, which continues to hover above the Fed’s 2% target.

Powell also expressed concern about rising federal debt and fiscal spending during a recent speech in Chicago.

Oil Stocks Rally as Crude Prices Jump 3%

Crude oil futures surged over 3%, reaching a session high of $64.15 per barrel, driven by geopolitical tensions and supply concerns. While energy stocks advanced, many still remain below key resistance levels like the 50-day and 200-day moving averages.

Tariff Developments Spark Market Attention

Global trade policies remain a key focus for investors. Nomura analysts reported an average U.S. tariff rate of around 21%, slightly down from the previous 27% estimate following the “Liberation Day” announcement. Sectors like pharmaceuticals, timber, copper, and lumber are expected to face further tariffs, fueling economic uncertainty.

Energy and Transport Stocks Lead the Day

• The best-performing sectors included international oil and gas exploration, field services, and trucking, with gains ranging between 2.2% to 2.6%.

• Medical-diversified stocks also showed strong momentum, posting an 8% gain.

• Trading volume surged on the NYSE by 10%, signaling increased investor activity before the holiday.

Health Insurers Under Pressure After UnitedHealth Plunge

UnitedHealth shares dropped over 23%, dragging down the entire managed care sector. The company missed quarterly earnings expectations for the first time in over a decade and revised its 2025 profit forecast downward due to rising costs in its Medicare Advantage program.

Other insurers like Humana and Elevance Health also declined sharply.

Indian Bank Stocks Rally on Strong Technical Breakouts

• ICICI Bank surged more than 3%, breaking out of a cup-with-handle base with a buy point at 31.99. Trading volume jumped over 130% above average.

• HDFC Bank extended past its own 67.12 buy point, signaling strong momentum among Indian financial giants listed on U.S. exchanges.

Semiconductor Stocks Bounce on Taiwan Semiconductor Earnings

Taiwan Semiconductor (TSMC) rebounded after reporting a 58% rise in Q1 profits, boosted by strong demand for AI chips. However, the stock remains in a downtrend after failing to hold above its 205.63 breakout point earlier this year. TSMC currently holds a 65 Composite Rating, which suggests only moderate strength compared to top-performing growth stocks.

Conclusion: Markets Hold Ground Amid Political and Economic Uncertainty

Despite ongoing political friction and earnings misses, the S&P 500 and small-cap indexes showed relative strength. Investors are advised to proceed with caution as the market outlook remains fragile, with IBD’s market exposure recommendation still at a conservative 0%-20%.