On Thursday, the Dow Jones Industrial Average and other major stock indexes exhibited a mixed performance, reacting to President Trump’s call for Federal Reserve Chairman Jerome Powell’s dismissal. Notable stocks included Nvidia and Tesla, which faced contrasting outcomes, while UnitedHealth experienced a significant drop and Taiwan Semiconductor Manufacturing Company (TSMC) rose sharply.
Following the opening bell, the Dow fell by approximately 1.3%, equivalent to about 500 points. Conversely, the S&P 500 added 0.4%, and the tech-heavy Nasdaq composite increased by 0.5%.
In addition, the yield on 10-year Treasury bonds rose to 4.29%, and oil prices saw an uptick, with West Texas Intermediate futures hovering near $63.50 per barrel. Among exchange-traded funds, both the Invesco QQQ Trust (QQQ) and the SPDR S&P 500 ETF (SPY) experienced modest gains.
Tesla’s stock climbed 0.5% on Thursday following a nearly 5% drop the previous day, although it remains down over 50% from its all-time high of 488.54 recorded in December. In contrast, Nvidia’s shares fell by 1.5%, marking a continued decline after a 7% drop on Wednesday.
President Trump’s criticism of Powell stemmed from comments made about the impacts of Trump’s tariffs, which reportedly contribute to rising inflation and slower economic growth. Trump claimed Powell’s removal “cannot come fast enough” and noted positive developments in trade talks with Japan, which are being closely monitored for potential outcomes.
On the economic front, the latest unemployment claims unexpectedly dropped to 215,000, defying predictions that anticipated an increase. However, the Philadelphia Fed manufacturing index showed a marked decrease, tumbling to -26.4 in April.
Among individual stocks, UnitedHealth faced a steep decline of nearly 20% early in the day after falling short of first-quarter earnings expectations and lowering its annual outlook due to unexpectedly high Medicare costs. In a contrasting performance, TSMC rose by 2% after surpassing first-quarter earnings estimates on robust demand for AI chips, serving clients like AMD and Apple.
Other significant movers included American Express, which fell 1.3%, while Charles Schwab gained 3.7%, and D.R. Horton increased by 2.5%.
Recent volatility has spotlighted the importance of strategic investment decisions. Companies like MercadoLibre, Netflix, Spotify, and TJX remain worth watching for potential growth opportunities. For instance, McDonald’s stock is forming a base that could suggest a buying opportunity, while Netflix and Spotify are establishing key price points to monitor.
Amid ongoing fluctuations, investors may find it crucial to remain vigilant and strategic in their stock market activities, focusing on long-term growth and appropriate entry points as market conditions evolve.
