The stock market sold off in a holiday-shortened week after the major indexes all hit resistance at the 21-day moving average. NVIDIA faces new export curbs that effectively end all AI chip sales to China, while Fed chief Jerome Powell sees a "challenging scenario" for policymakers due to Trump tariffs. Those triggered Wednesday's big losses, and UnitedHealth weighed on the Dow Jones Thursday. Goldman Sachs, Travelers, Johnson & Johnson and American Express also were Dow stocks reporting. So were chip giant Taiwan Semiconductor Manufacturing and United Continental, with Netflix due late Thursday. President Donald Trump signaled some tariff "help" for U.S. automakers while touting "progress" in trade talks with Japan.

Stock Market Falls Back

The stock market retreated this week, mostly on Wednesday's new Nvidia (NVDA) export curbs and Fed chief Jerome Powell's assessment of the economy and rates amid Trump tariffs. The major indexes all fell from their 21-day moving averages. Some growth stocks that flashed entries in the week took losses later on. Treasury yields fell sharply, a welcome shift after the prior week's spike. Crude oil prices jumped.

Fed's Powell Sees Tariff 'Tension'

Federal Reserve Chairman Jerome Powell said big Trump tariffs are likely to boost inflation and weaken economic growth, creating a "challenging scenario" by putting the Fed's dual mandate of stable prices and strong employment in "tension." Powell sees no rush to move regarding interest rates. President Trump responded in a Truth Social post the following day, saying Powell is "always TOO LATE AND WRONG," adding that his "termination cannot come fast enough." Powell's term as Fed chief ends in May 2026.

Economic Data Mixed

March retail sales leaped 1.4%, the biggest monthly gain in over two years, as consumers rushed to buy autos and other big-ticket items before the impact of Trump tariffs hits. Jobless claims fell in the latest week. But the Philly Fed manufacturing index plunged to a two-year low in April, following another negative reading for the New York Empire State manufacturing index. Both timely regional reports showed plunging new orders and intensifying price pressures.

Trump Tariff Impacts

President Trump said he would give a "little help" to automakers facing tariff impacts, though he didn't give specifics. That boosted General Motors (GM) and Ford (F). China reportedly has halted Boeing (BA) jet shipments, a potential long-term hit. Trump reportedly is taking steps to create a strategic reserve for rare earths used in EVs and many tech products, as Beijing restricts imports. That lifted U.S.-based MP Materials (MP) and a few related stocks.

Nvidia Faces New China Curbs

Nvidia (NVDA) late Tuesday said its H20 AI chip will also require an export license for China, resulting in what could be a $5.5 billion charge. The company designed the H20 specifically for the China market to comply with strict export controls. But now the U.S. government is essentially blocking all AI chip sales to China. Extended restrictions would mean a major revenue loss over time, though it's still possible that export controls could be eased as part of a bigger U.S.-China trade deal. Advanced Micro Devices (AMD) sees charges of up to $800 million on the tougher export curbs. Nvidia and AMD stocks tumbled.

TSMC Tops Q1 Views

Taiwan Semiconductor Manufacturing (TSM) beat estimates for the first quarter with EPS up 58% and sales jumping 39% to $25.53 billion, both showing accelerating growth. TSMC also guided higher on Q2 revenue, predicting a 39% rise to $28.8 billion, based on the midpoint of its outlook. TSMC cited strong demand for AI chips for its outperformance. However, Taiwan Semi kept full-year targets, suggesting some caution for later in the year amid tariffs, export curbs and AI questions. Meanwhile, semiconductor equipment giant ASML (ASML) beat analyst estimates for the first quarter, with EPS soaring 105% and sales running 56% higher to $8.77 billion. But the Dutch company guided low on Q2 sales.

UnitedHealth Dives In Stock Market On Slashed Guidance

UnitedHealth (UNH) missed first-quarter earnings views and slashed full-year guidance early Thursday, citing Medicare costs that were "far above" expectations and expected to stay high. Q1 EPS rose 4% while revenue grew 10% to $109.58 billion. For 2025, UnitedHealth now sees EPS of $26-$26.50 a share vs. its prior target of $29.50-$30. UnitedHealth stock plummeted Thursday. Other health insurers also fell, notably Humana (HUM).

More Banks Beat, Look Ahead

Goldman Sachs (GS) comfortably beat estimates for Q1 results with a 23% EPS gain while net revenue increased 6% to $15.06 billion. The Wall Street giant also announced plans for a $40 billion buyback. CEO David Solomon said Goldman entered Q2 with a "markedly different operating environment than earlier this year." Bank of America (BAC) posted an 18% per-share profit rise with revenue up 6% to $26.98 billion. CFO Alastair Borthwick during the investor call said that consumers are "continuing to spend," which signals that "the U.S. economy still remains in good shape." Still, Citigroup (C) CEO Jane Fraser said that clients are pausing plans and preparing for more headwinds. Citi's Q1 EPS swelled 24% of $1.96 per share while revenue increased 2% to $21.26 billion.

Meta Antitrust Trial Begins

Meta Platforms (META) CEO Mark Zuckerberg took the stand in the company's closely watched antitrust trial. The FTC says the social media titan abused monopoly power to acquire Instagram and WhatsApp more than a decade ago. Its lawsuit, filed in 2020, seeks to unwind the deals. Zuckerberg and Meta say that Facebook and Instagram compete with TikTok, YouTube, X and others. The FTC categorizes those apps separately and says that Meta's products dominate a "personal social-networking" category. The trial is expected to last for weeks. In the meantime, multiple analysts lowered their price targets for Meta stock, citing risks to digital ad spending from an economic slowdown and tariffs that have hit Chinese e-commerce plays. Meta was down in Thursday's stock market trading.

Google parent Alphabet (GOOGL) illegally dominated two online advertising markets, a federal judge ruled Thursday. That could let prosecutors argue for a breakup of Google's ad business. Another federal judge this month will begin a penalty phase to decide whether to force Google to sell its Chrome browser and possibly more to address its online search dominance.

Insurance Earnings Top

Travelers Companies (TRV) on Wednesday reported earnings of $1.91 per share, vaulting over FactSet expectations for 79 cents. Net written premiums for the quarter rose 3% to $10.52 billion, just below estimates. Total revenue increased 5% to $11.81 billion vs. expectations for $12.1 billion. The Dow Jones insurer said that its earnings declined from $4.69 per share last year due to $2.266 billion in catastrophe losses, primarily driven by January's California wildfires. Travelers is one of the top 10 property and casualty insurers in California with a 4.3% market share. Elsewhere, Progressive (PGR) on Wednesday reported a 17% increase in net written premiums in Q1 to $22.2 billion. Earnings rose 11%. Travelers stock rose on the stock market while Progressive fell.

Eli Lilly Scores With Obesity Pill

Eli Lilly (LLY) reported a successful final-phase study for its diabetes and weight-loss pill, orforglipron. Over 40 weeks, patients taking orforglipron experienced a 1.3% to 1.6% reduction in A1C. Nearly two-thirds experienced a big enough A1C reduction to no longer be considered diabetic, by the American Diabetes Association's definition. Importantly, patients lost up to 7.9% of their body weight, on average. That equated to an average 16 pounds. Rates of vomiting and diarrhea declined in the Phase 3 study vs. earlier testing, and none of the patients experienced any serious side effects in the liver — a fear after Pfizer has scrapped several drugs due to liver problems. Lilly is running additional testing in patients with obesity. Lilly stock spiked Thursday on that news.

Schwab, Interactive Brokers Diverge

Charles Schwab (SCHW) earnings increased 41% per share adjusted while net revenue jumped 18% to $5.59 billion, both slightly topping views. Net new assets jumped 44% to $137.7 billion, a big beat. Total client assets rose 9% to $9.93 trillion. Meanwhile, daily average trading volume jumped 17% vs. the prior quarter, driven by market volatility. SCHW stock rose above its 50-day line. Interactive Brokers (IBKR) on Thursday reported a 15% EPS gain, slightly missing, while total revenue increased 19% to $1.43 billion, above targets. Interactive reported a 47% increase in stock trading volume for its customers, while options trading jumped 25%. But shares tumbled.

Medical Giants

Health giants Johnson & Johnson (JNJ) and Abbott Laboratories (ABT) reported their first-quarter earnings on Tuesday and Wednesday, respectively. While J&J beat on the top- and bottom-line, Abbott's report was mixed. Johnson & Johnson's EPS rose 2%, with sales also up 2% to $21.89 billion. J&J raised its sales outlook for the year, though it kept its earnings view intact. Abbott's adjusted EPS grew 13%, slightly beating, but a 4% revenue increase to $10.36 billion missed. Organically, sales rose 6.9%. Abbott reiterated its guidance for the year. Both stocks rose, with Abbott clearing key levels.

Stock Market News In Brief

Palantir Technologies (PLTR) finalized the sale of an artificial intelligence-enabled warfare fighting system to NATO, the U.S.-Europe mutual defense alliance. The NATO Communications and Information Agency (NCIA) said Allied Command Operations has purchased the Palantir Maven Smart System for deployment at its military headquarters. The agreement was finalized on March 25, said the NCIA. Terms were not disclosed. Shares jumped.

Rocket Lab (RKLB) jumped 10% on Tuesday after saying it was tapped to compete for two multibillion dollar initiatives to test hypersonic technology, one for the U.S. and one for the U.K. But the launch services and rocket company's shares slashed weekly gains.

United Airlines (UAL) posted better-than-expected first-quarter profit late Tuesday, swinging from a year-earlier loss. Revenue rose 5% to $13.21 billion, slightly missing. United chose to follow Delta Air Lines (DAL) and reduce planned capacity growth amid President Donald Trump's fast-moving trade policy and unclear economic outlook. For the full year, United gave two forecasts, one for a "stable environment" and one for a "recessionary environment." UAL stock edged higher.