NEW YORK, April 17 (Xinhua) -- U.S. stocks ended with mixed results on Thursday, as optimism over trade negotiations with Japan was tempered by growing concerns over the interest rate outlook.
The Dow Jones Industrial Average dropped 527.16 points, or 1.33 percent, to 39,142.23, largely dragged down by a plunge of 22.38 percent in UnitedHealth shares following the company's earnings disappointment. In contrast, the S&P 500 inched up 7.0 points, or 0.13 percent, to 5,282.7, while the Nasdaq Composite Index edged lower by 20.71 points, or 0.13 percent, closing at 16,286.45.
Eight of the eleven major sectors in the S&P 500 finished higher. Energy and consumer staples led the gainers, climbing 2.28 percent and 2.18 percent, respectively. On the downside, technology and healthcare underperformed, falling 0.67 percent and 0.64 percent, respectively.
Nvidia extended its losses on Thursday, slipping nearly 3 percent after a nearly 7 percent drop the previous day. The company recently revealed a 5.5 billion U.S. dollar charge related to U.S. export restrictions impacting sales of its H20 GPUs to China and other markets.
However, some bright spots emerged in individual stocks. Eli Lilly surged 14.3 percent after announcing successful trial results for a new weight-loss pill, while Netflix gained 1.19 percent ahead of its earnings release.
Stocks received a modest lift in the afternoon after U.S. President Donald Trump expressed optimism about potential trade deals with China and the European Union. His comments came a day after Federal Reserve Chair Jerome Powell warned that the administration's tariff strategy might stoke inflation and complicate monetary policy decisions. Trump also inserted himself directly into trade talks with Japanese officials on Wednesday.
However, U.S. jobless claims fell more than expected last week, underscoring the continued strength of the labor market even as concerns mount over a potential tariff-driven slowdown. The Labor Department reported Thursday that initial applications for unemployment benefits declined by 9,000 to a seasonally adjusted 215,000 for the week ending April 12. That figure came in well below analysts' expectations of 225,000.
"This is a market that is waiting and looking for direction," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. "Right now, it's more about waiting to see what happens with those trade deals."
Meanwhile, the U.S. 10-year Treasury yield climbed near 5 basis points to 4.33 percent as of 2:30 p.m. EDT, marking its sharpest daily gain in nearly a week amid persistent inflation concerns. Despite Thursday's rise, the yield fell 16.6 basis points over the week.
Both the U.S. bond market and stock market will be closed on Friday in observance of Good Friday.
In the IPO market, Chinese tea chain Chagee made a strong debut on the Nasdaq, defying broader market turbulence. The stock soared 15.89 percent, giving the company a valuation of 6 billion dollars, and closed at 32.44 dollars per share.
