Dow Drops Another 500 Points as Trade War Fears Weigh on Markets Despite Trump’s Reassurance
Dow Drops Another 500 Points as Trade War Fears Weigh on Markets Despite Trump’s Reassurance
April 17, 2025 — U.S. stocks closed mixed on Thursday in a volatile session, with the Dow Jones Industrial Average falling for a third straight day as trade war tensions between the U.S. and China continued to pressure investor sentiment — despite President Donald Trump signaling openness to renewed negotiations.
- Dow Jones fell 527.16 points (-1.33%) to 39,142.23
- S&P 500 edged up 0.13% to 5,282.70
- Nasdaq Composite dipped 0.13% to 16,286.45
📉 Key market drags:
- UnitedHealth plunged over 22% after posting weaker-than-expected earnings.
- Nvidia dropped 3%, extending its losses following a near 7% decline in the prior session, as investors reacted to a reported $5.5 billion quarterly cost tied to U.S. export restrictions on high-end GPUs to China.
📈 Market gainers:
- Eli Lilly surged 14% after reporting strong weight-loss drug trial results.
- Netflix rose 1% ahead of its earnings release.
💬 Trump’s remarks offer temporary lift:
Stocks briefly recovered after President Trump said he expects to reach trade agreements with both China and the EU, suggesting possible de-escalation after weeks of tariff escalations. This came just a day after Fed Chair Jerome Powell warned that elevated tariffs could lead to near-term inflation and complicate the Fed’s monetary policy stance.
📊 Weekly performance snapshot:
- Dow Jones and Nasdaq are down more than 2% this week.
- S&P 500 has fallen 1.5%.
- Markets will be closed Friday for Good Friday.
🔍 Analyst perspective:
“This market is looking for clarity and direction,”
(said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.)
“It’s less about reacting, and more about waiting to see whether these trade deals actually materialize.”
The S&P 500 has now fallen nearly 7% since Trump first unveiled his “reciprocal tariffs” plan on April 2, despite a temporary 90-day pause in implementation. Investors remain cautious amid lingering policy uncertainty.