Nasdaq Composite, S&P500 edge higher; Dow Jones tumbles over 1% as UnitedHealth falls 18%

Adding to the caution, Federal Reserve Chair Jerome Powell warned that Trump’s new tariff plan could fuel near-term inflation and complicate the Fed’s dual mandate.

Wall Street's main indices opened mixed on Thursday, the last trading session of the week, as investors tried to recoup losses from the previous session, with modest gains in tech and pharma offset by a sharp drop in healthcare heavyweight UnitedHealth.

The Nasdaq Composite traded near the flatline while the S&P 500 edged 0.2 percent higher in early trade, recovering slightly after a steep midweek slide. The Dow Jones Industrial Average, however, fell over 460 points—or 1.2 percent—pressured by an 18 percent plunge in UnitedHealth shares following a disappointing earnings report.

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In contrast, Eli Lilly surged 11 percent in premarket trading after releasing positive clinical trial results for a new weight-loss drug. Taiwan Semiconductor also lifted sentiment, with its U.S.-listed shares rising 3 percent after strong quarterly numbers.

US' CBOE cooled off over 3 percent to hover close to the 31 level.

Markets were still on track to end the holiday-shortened week lower. The Dow and S&P 500 have declined more than 1 percent so far, while the Nasdaq is down 2.5 percent. The S&P 500 and Dow Jones have dropped 7 percent and 6 percent, respectively, since Trump's April 2 tariff announcement. U.S. exchanges will remain shut on Friday in observance of Good Friday.

Wednesday’s session saw a widespread tech selloff, with Nvidia sliding nearly 7 percent after disclosing a $5.5 billion quarterly charge linked to U.S. export controls on its H20 chips sold to China and other markets. Nvidia shares were flat in early Thursday trade.

Read more: Trump tariff wars: Home textile orders worth $2 bn in limbo

Adding to the caution, Federal Reserve Chair Jerome Powell warned that Trump’s new tariff plan could fuel near-term inflation and complicate the Fed’s dual mandate.

As the week draws to a close, traders remain focused on earnings, and global trade developments that could set the tone heading into next month.

Meanwhile, European stocks trimmed early losses on Thursday but continued to trade in the red after the European Central Bank delivered a widely anticipated interest rate cut. The pan-European Stoxx 600 was down 0.5 percent by early afternoon in London, with most sectors under pressure. Energy was the only bright spot, as oil and gas stocks bucked the broader trend.

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