Dow Jones futures turned sharply lower early Thursday as UnitedHealth dived on slashed guidance while S&P 500 futures and Nasdaq futures rose on earnings from Nvidia chipmaker Taiwan Semiconductor.
American Express beat views, with key economic reports also on tap before the open. Netflix reports after the close.
The stock market sold off Wednesday, with Nvidia and other AI chipmakers plunging on new export controls that essentially halt all AI chip sales to China. Meanwhile, Federal Reserve Chairman Jerome Powell said Trump tariffs may create a "challenging scenario" for policymakers.
Trump Rips Powell, Hails Trade Talks
Early Thursday, President Donald Trump said in a Truth Social post that Fed chief Powell is "always TOO LATE AND WRONG," saying the central bank should have already cut rates. He added that his "termination cannot come fast enough." The Truth Social post followed Powell's Wednesday comments that big Trump tariffs will likely spur higher inflation and weaker growth, adding that he's in no rush to act.
Powell's term ends in May 2026, with Trump's pick to head the Fed a huge decision. There has been speculation that Trump could try to fire Powell, and even other Fed governors, given similar moves at other federal agencies.
Also Thursday, Trump said he had a very productive call with Mexico President Claudia Sheinbaum.
Late Wednesday, President Trump cited "big progress" in Japan trade talks, which are being closely watched around the world to see what deals the U.S. would accept. A second round of talks should take place later this month.
Dow Jones Futures Today
Dow Jones futures fell 1.55% vs. fair value, reversing sharply lower from solid gains as UnitedHealth stock weighed on blue chips. American Express also is a Dow component. S&P 500 futures advanced 0.5% and Nasdaq 100 futures gained 0.8%, both off overnight highs.
The 10-year Treasury yield climbed to 4.3%.
Crude oil futures rose more than 1%.
At 8:30 a.m. ET, investors will get March housing starts, the April Philly Fed manufacturing index and the latest weekly jobless claims.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Key Earnings
Taiwan Semiconductor earnings and sales topped first-quarter views. The Apple and Nvidia chipmaker guided higher on Q2 revenue, but maintained full-year targets, signaling some caution for the back half of the year amid Trump tariffs and broader AI concerns. The world's largest chip foundry reiterated full-year capital spending plans. Taiwan Semi stock rose more than 3% early Thursday. TSM stock fell 3.6% on Wednesday in the wake of Nvidia's China restrictions.
UnitedHealth missed Q1 earnings views and cut full-year guidance, citing Medicare Advantage costs that were "far above" plan. UNH stock dived 20% in premarket trade, with other health insurers falling solidly. Shares had recently surged on higher-than-expected Medicare Advantage payments for 2026.
American Express earnings beat views, with revenue just edging past estimates. The Dow Jones credit card giant maintained full-year earnings estimates. AXP stock fell modestly before the open. Shares are off early April lows but still in a downtrend, below most key levels.
Netflix earnings are due Thursday night. The streaming media giant, seen as insulated to tariffs and recession resistant, is expected to continue solid earnings growth in Q1, but will no longer provide subscriber figures. Netflix stock fell 1.5% to 961.63 on Wednesday, holding the 50-day line after Tuesday's 4.8% bounce. That move triggered an early entry for NFLX stock, with a 998.70 double-bottom buy point close.
Stock Market Rally
The stock market rally lost ground Wednesday, with the heaviest damage in tech and especially semiconductors. The indexes did close somewhat off afternoon lows.
The Trump administration has essentially halted all AI chip sales to China, requiring an export license even for Nvidia's lesser H20 GPUs. Nvidia stock sank 6.9%. Advanced Micro Devices, also affected, gave up 7.4%.
The Dow Jones Industrial Average fell 1.7% in Wednesday's stock market trading. The S&P 500 index shed 2.2%. The Nasdaq composite skidded 3.1%.
The major indexes had hit resistance at their falling 21-day moving averages in the prior two sessions.
The small-cap Russell 2000 declined 1%.
A stock market rally attempt continues as long as the major indexes hold above their April 7 lows, but there has been no follow-through day yet.
Palantir Technologies fell 5.8% to 92.71, well below a 98.17 double-bottom buy point cleared on Tuesday. Palantir stock is back to the 50-day line.
Tesla fell 4.9% on negative headlines. The EV giant reportedly halted shipments of key parts for the Tesla Semi and upcoming Cybercab, due to China tariffs. Also, Tesla registrations fell in the critical California market for yet another quarter. Tesla earnings are due April 22.
Some growth stocks are doing well, especially those that are less exposed or even insulated from tariffs, such as Netflix.
Defensive growth is faring relatively well, including insurers, aerospace and education plays. But as the early April sell-off showed, those are safer, not safe.
U.S. crude oil prices rose 1.9% to $62.47 a barrel.
The 10-year Treasury yield declined five basis points to 4.28%, plunging nearly 22 basis points so far this week.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF lost 1.85%. The iShares Expanded Tech-Software Sector ETF fell 2.4%. The VanEck Vectors Semiconductor ETF tumbled 4.2%. Taiwan Semiconductor stock and especially Nvidia are major SMH holdings, with AMD also in the ETF.
ARK Innovation ETF retreated 3.2% and ARK Genomics ETF 2.4%. Tesla stock is still the No. 1 holding across ARK Invest's ETFs, with Cathie Wood owning a lot of Palantir too.
SPDR S&P Metals & Mining ETF climbed 0.8%. The Health Care Select Sector SPDR Fund declined 1%, with UnitedHealth stock a huge member.
The Industrial Select Sector SPDR Fund dropped 1.4%. The Financial Select SPDR ETF fell 1.6%, with American Express stock in XLF.
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What To Do Now
Investors who tiptoed into some promising stocks on Tuesday, such as Palantir probably needed to step back out. If you're aggressive stepping, you need to be just as quick to exit.
A market rally attempt continues, and there have been some big one-day gains recently. But it's still a correction.
After a couple of sessions with reduced Trump tariff volatility and perhaps a tiny upward bias, the headline-driven sell-off has resumed.
Could another news alert trigger a massive rally? Absolutely. But investors can't make big bets on "what if?" Focus on "what is."
Have your watchlists ready, focusing on relative strength, but be patient.
Netflix stock is on IBD Leaderboard watchlist. Netflix and Palantir stock are on the IBD 50 and IBD Big Cap 20.
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