Today's War Room Trading Recap

On Thursday, April 17, 2025, U.S. markets opened with a mixed performance, reflecting a brief rebound from the previous day’s tech-driven selloff. The S&P 500 and Nasdaq Composite gained 0.56% and 0.57% respectively, buoyed by strong earnings from Taiwan Semiconductor Manufacturing Co. (TSMC), which reported a 42% year-over-year revenue increase and reaffirmed its 2025 outlook. However, the Dow Jones Industrial Average declined by 1.17%, primarily due to a significant 18% drop in UnitedHealth Group shares after the company cut its annual profit forecast, citing rising medical costs. ​Reuters

As the trading day progressed, initial optimism waned, and a broad-based selloff ensued. Investor sentiment was dampened by Federal Reserve Chair Jerome Powell’s hawkish remarks, emphasizing that tariffs could lead to persistent inflation, thereby reducing the likelihood of imminent interest rate cuts. Additionally, escalating trade tensions, particularly the imposition of new U.S. tariffs on Chinese goods, contributed to market volatility. Nvidia’s disclosure of a $5.5 billion charge related to U.S. chip export restrictions to China further exacerbated concerns, leading to a 6.87% decline in its stock. These developments intensified fears of a potential recession, prompting investors to retreat from riskier assets and resulting in a downward trajectory for major indices by the market close.​Reuters