By Hannah Erin Lang and Joe Wallace

Stocks wrapped up another volatile week with a mixed day as the global trade war remains top of mind and tensions rose between the Trump administration and the Federal Reserve.

The S&P 500 ticked up 0.1%, while the Nasdaq slipped 0.1%. The Dow Jones Industrial Average was an outlier, falling 1.3%, or 527 points after disappointing results from UnitedHealth. UnitedHealth's share price, which dropped by $130.93, or 22%, has an outsize effect on the price-weighted Dow index.

With markets closed Friday, trading on Thursday marked the end of another week dominated by the ebbs and flows of U.S. trade policy. On Monday, stocks ended higher after the Trump administration signaled that the tech and auto industries could get relief from some tariffs.

Two days later, the brief calm came to an end as investors weighed the announcement of new U.S. restrictions on exports to China. Shares of Nvidia tumbled 6.9% on the news and continued their descent Thursday, falling another 2.9%. Other tech stocks were still struggling for momentum Thursday, with six of the Magnificent 7 notching losses.

The Nasdaq and the S&P 500 finished the week lower for the ninth time in the last 12 weeks, while the Dow declined for the fifth time in the last seven weeks. Friday also marked the first day that the Dow fell 1% or more while the S&P 500 gained on the day, according to Dow Jones Market Data records going back to 1928.

Also hanging over markets is a potential showdown between President Trump and the country's central bank.

Trump stepped up his attacks on Fed Chairman Jerome Powell Thursday, saying the central banker's "termination cannot come fast enough."

In a Wednesday speech, Powell said trade conflict is putting a squeeze on the Fed. He also reiterated that the bank won't respond to political pressure. "Our independence is a matter of law," he said. Trump responded at a press briefing Thursday afternoon that "if I want him out, he'll be out of there real fast, believe me."

Tensions between the White House and the Fed could unnerve investors who see the bank's independence as a foundational appeal of U.S. markets. The Treasury market, which is often sensitive to Fed policy, was relatively quiet Thursday. Benchmark 10-year Treasury yields rose 0.049 percentage point to about 4.325%, snapping three days of declines.

On trade, Trump on Thursday said he would have "very little problem" making a deal with the European Union to reduce tariffs and other trade barriers. Treasury Secretary Scott Bessent said the U.S. is giving priority to tariff negotiations with about 15 trading partners including the EU and Japan.

News of those negotiations could be one silver lining for investors, many of whom are eager for signs that the trade war won't last as long as feared.

"As different countries have these conversations and come to the table, there may be a beginning to the end," said Sandy Villere, portfolio manager at Villere & Co. "I think just seeing a beginning to the end could be enough to calm the markets.

Write to Hannah Erin Lang at hannaherin.lang@wsj.com and Joe Wallace at joe.wallace@wsj.com

(END) Dow Jones Newswires

April 17, 2025 16:37 ET (20:37 GMT)

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