Wall Street Futures Mixed as Investors Seek Recovery Amid Earnings Surprises and Tariff Concerns

US stock futures saw mixed movement on Thursday as investors sought to regain ground after Wednesday’s sharp sell-off, while fresh corporate earnings and geopolitical tensions continued to influence market sentiment.

Futures tied to the S&P 500 gained 0.4%, while Nasdaq-100 futures rose 0.7%, helped by rebounds in key tech and pharmaceutical stocks. The Dow Jones Industrial Average, however, pointed sharply lower, falling 583 points, or 1.5%, weighed down heavily by a 19% plunge in UnitedHealth shares following a disappointing earnings report.

UnitedHealth missed Wall Street expectations for both earnings and revenue and slashed its full-year guidance, triggering the largest single-day premarket drop for the insurer in years. The company now expects adjusted earnings per share between $26 and $26.50, well below the previous range and analyst estimates.

On the upside, Eli Lilly surged 11% in premarket trading after reporting positive Phase 3 trial results for its oral Type 2 diabetes drug, orforglipron, which also showed significant weight-loss benefits. The pill-based treatment could pose a competitive threat to injectable GLP-1 drugs currently dominating the market.

In the semiconductor space, Taiwan Semiconductor Manufacturing Company (TSMC) rose 3% after beating first-quarter revenue expectations and reaffirming its full-year growth outlook. The strong performance came amid continued concerns about rising tariffs on chip imports, including potential 32% duties once a 90-day tariff moratorium ends.

Markets are reacting to a volatile week, with Wednesday marking one of the worst days for equities in months. The Nasdaq Composite dropped over 3%, inching closer to bear market territory, while the S&P 500 and Dow fell 2.2% and 1.7%, respectively.

Tech stocks bore the brunt of the losses, with Nvidia falling nearly 7% after announcing a $5.5 billion charge related to US export restrictions on its AI chips destined for China. The restrictions also impacted rival chipmaker AMD and underscored ongoing trade tensions between the US and China.

Further pressuring investor sentiment were comments from Federal Reserve Chair Jerome Powell, who warned that recently proposed tariffs could exacerbate inflationary pressures. Powell acknowledged the potential conflict between the Fed’s dual mandate of ensuring price stability and maximizing employment, describing the current outlook as “challenging.”

Despite Thursday’s modest gains in some areas, all three major indices remain on track for a losing week. The Dow and S&P 500 are both down over 1%, while the Nasdaq has fallen more than 2.5%. US markets will be closed on Friday in observance of Good Friday.

With input from CNBC and the Wall Street Journal, and Business Insider.