Market Wrap: S&P 500 Snaps Losing Streak While Dow Dives 500 Points

Investors navigated a choppy trading session on Thursday as tariff tensions and mixed earnings reports kept markets on edge. While the S&P 500 managed a slight gain, the Dow Jones Industrial Average tumbled over 500 points—extending its losing streak to three days. What’s driving this divergence, and what should investors watch next?

A Split Market Performance

The S&P 500 eked out a 0.13% gain to close at 5,282.70, snapping a two-day losing streak. Meanwhile, the Nasdaq Composite dipped 0.13%, settling at 16,286.45. The real laggard was the Dow, which plunged 1.33% (527 points) to 39,142.23—its third straight day in the red.

Key drivers behind the Dow’s slump:

• UnitedHealth cratered 22% after missing earnings estimates.
• Nvidia slid 3%, adding to its 7% drop earlier in the week due to a $5.5 billion charge linked to U.S. export controls.

On the upside, Eli Lilly surged 14% on positive weight-loss drug trial results, while Netflix gained 1% ahead of its earnings report.

Tariff Jitters and Fed Warnings

Markets briefly perked up after former President Trump suggested potential trade deals with China and the EU. However, optimism faded as investors weighed Federal Reserve Chair Jerome Powell’s warning that tariffs could stoke inflation and complicate monetary policy.

Since Trump floated “reciprocal” tariffs in early April:

• The S&P 500 has fallen nearly 7%.
• The Dow and Nasdaq have each lost over 7%.

“This is a market waiting for direction,” said Rob Haworth of U.S. Bank Wealth Management. “Trade deals are the key catalyst.”

## Earnings and Analyst Moves

Coty, the beauty giant, saw its shares downgraded by Raymond James from “outperform” to “market perform,” citing challenges in fragrance demand and slowing margin growth. The stock has plunged 33% this year.

Meanwhile, Netflix gained 1.6% ahead of its earnings report, bucking the broader tech slump. Analysts remain bullish on its growth prospects despite tariff headwinds.

What’s Next for Investors?

With markets closed for Good Friday, investors will return next week to fresh earnings reports and ongoing trade policy developments. Key takeaways:

• Healthcare and tech stocks are driving volatility—watch for earnings surprises.
• Tariff risks remain a wildcard; any progress on trade talks could lift sentiment.
• The Fed’s inflation concerns suggest rate cuts may be delayed, keeping pressure on growth stocks.

While the S&P 500’s modest rebound offers hope, the Dow’s steep drop signals lingering caution. For now, patience—and selective positioning—may be the best strategy.

Disclosure: The author holds no positions in the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Netflix.