U.S. stock markets kicked off Thursday, April 17, with mixed performances, as investors reacted to earnings reports and growing macroeconomic uncertainty. The Dow Jones Industrial Average opened in the red, plunging by 500 points in early trading following a sharp drop in UnitedHealth shares.
Meanwhile, the S&P 500 and Nasdaq Composite opened slightly higher, gaining 0.3% and 0.4% respectively. Their early gains aligned with expectations in the futures markets, bolstered in part by Taiwan Semiconductor Manufacturing Company (TSMC) reporting a 60% jump in Q1 net profits.
However, investor sentiment quickly turned cautious. Both the S&P 500 and Nasdaq faced pressure as risk-off sentiment continued to dominate market behaviour.
Trump Slams Fed Chair Powell, Renews Call for Rate Cuts
Adding to market volatility, former President Donald Trump reignited criticism of Federal Reserve Chair Jerome Powell, calling him “late and wrong” in his approach to interest rate policy. Trump issued a fiery post on Truth Social, demanding that the Fed follow the lead of the European Central Bank (ECB) and cut interest rates immediately.
The post came shortly after Powell acknowledged the complexity of balancing inflation control and economic growth amid U.S. tariff policies. Trump emphasised that the ECB had already lowered rates multiple times and had just announced another 25-basis-point cut, bringing its key interest rate to 2.25%.
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In his statement, Trump remarked, “Powell’s termination cannot come fast enough!”, fueling speculation about political pressure on the central bank ahead of the 2025 election cycle.
Weekly Performance: Dow, S&P 500, and Nasdaq Struggle
This week, U.S. equities have experienced broad sell-offs, led by heavyweight tech names such as Nvidia. The Dow and S&P 500 have both declined more than 1% week-to-date, while the tech-heavy Nasdaq has dropped by over 2.5% in the past five days.
Analysts attribute this weakness to persistent uncertainty surrounding tariff escalation, inflation expectations, and future actions by the Federal Reserve. With a shortened trading week, investors are hoping for a positive close, but the outlook remains fragile.
Tariffs and Monetary Policy Dictate Investor Sentiment
Global trade tensions and central bank decisions remain the two main themes guiding markets. The White House’s aggressive tariff stance continues to challenge the Fed’s ability to manoeuvre policy effectively. Meanwhile, investors are pricing in higher volatility as economic indicators remain mixed.
In this climate, even upbeat corporate earnings fail to provide lasting support. While companies like TSMC are posting strong results, broader concerns over growth, inflation, and geopolitical tensions are overshadowing the good news.
Cryptocurrencies Remain Flat as Risk Appetite Dwindles
The cautious tone in equities has spilt over into the crypto market. Bitcoin (BTC), which often mirrors traditional risk assets, has remained mostly flat over the past 24 hours, trading around $84,500. Other top cryptocurrencies have shown similar behaviour, reflecting investor hesitation to take on high-risk bets in the current climate.
Market analysts say that crypto may continue to mirror Wall Street in the short term, especially as monetary policy signals become clearer.
Final Thoughts: Investors Brace for More Volatility
With tariffs dominating political headlines and Trump doubling down on his push for lower interest rates, the market is entering a high-stakes phase. The Fed’s next move will be critical in restoring investor confidence or triggering further downside.
For now, equities remain volatile, and crypto continues to follow Wall Street’s lead. Investors are watching closely, hoping for policy clarity that could set the tone for the rest of Q2.
Source: FX Crypto News / Digpu NewsTex