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5 things to know before the stock market opens Thursday

A trader works, as a screen broadcasts a live interview with U.S. Federal Reserve Chair Jerome Powell, on the floor at the New York Stock Exchange in New York City, U.S., April 16, 2025.
Brendan McDermid | Reuters

A trader works, as a screen broadcasts a live interview with U.S. Federal Reserve Chair Jerome Powell, on the floor at the New York Stock Exchange in New York City, U.S., April 16, 2025.

  • Markets fell Wednesday, led by chip stocks, after Nvidia's warning about a massive charge for its H20 models.
  • Federal Reserve Chair Jerome Powell said tariffs will make the central bank's job difficult, prompting President Donald Trump to again call on him to cut rates.
  • UnitedHealth slashed its profit outlook, taking insurance stocks down with it.

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Here are the most important news items that investors need to start their trading day:

1. Chipping away

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U.S. stocks slid Wednesday as Nvidia pulled down the technology sector and weighed on the broader market. The tech-heavy Nasdaq Composite fell 3.1%, while the S&P 500 and Dow Jones Industrial Average dropped 2.2% and 1.7%, respectively. Shares of Nvidia, the third-largest U.S. company by market cap, tumbled nearly 7% after the chipmaker said it would take a $5.5 billion charge related to exports of its G20 chips to China and other markets. Federal Reserve Chair Jerome Powell also indicated President Donald Trump's tariffs would pose a challenge for the central bank as it tries to support the economy and control inflation. On Thursday, investors will be watching initial jobless claims data in the morning and Netflix earnings after the bell, among other events that could influence the market. Follow live market updates.

2. Powell in a pickle

The Federal Reserve has two main goals: keep prices stable and support full employment. Trump's wide-ranging tariffs, if they both increase the cost of goods and slow the economy, could dampen the Fed's progress on both fronts. Powell acknowledged the difficulty of balancing those priorities. "We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension," he said in a speech at the Economic Club of Chicago. He later said tariffs will likely "move us further away from our goals ... probably for the balance of this year." Trump again lashed out at Powell after the remarks, calling on him to cut rates and adding "his termination cannot come fast enough!"

3. UNHealthy outlook

UnitedHealth shares plummeted in premarket trading after the insurer slashed its profit outlook for the year. The company said it cut its guidance due to higher-than-expected costs as older Americans seek more medical care than anticipated. Shares of other health insurers including CVS, Cigna and Humana dropped in premarket trading, as high medical costs have weighed on the broader sector in recent years.

4. Sharpton's next Target

Shannon Stapleton | Reuters
Rev. Al Sharpton speaks at a news conference after the National Action Network "Mothers of the Movement" panel in New York, April 14, 2021.

Target CEO Brian Cornell will meet with the Rev. Al Sharpton this week to discuss the retailer's rollback of major diversity, equity and inclusion initiatives. The conversation, which Target initiated, comes as the company faces calls for boycotts and a drop in foot traffic that started soon after it dropped key DEI programs. Sharpton, who has met with PepsiCo executives over DEI, said he is considering a boycott of Target, but it will depend on whether Cornell reaffirms the retailer's commitment to Black businesses and workers. "If an election determines your commitment to fairness then fine, you have a right to withdraw from us, but then we have a right to withdraw from you," Sharpton told CNBC.

5. Surfing US-AI

OpenAI is mulling a big move to stay ahead of its rivals in the generative artificial intelligence race. OpenAI is in talks to acquire WindSurf, an AI tool that helps with coding, for $3 billion, CNBC confirmed. The company's tool competes with products from Microsoft, Anthropic and OpenAI itself. It wasn't the only splash OpenAI made on Wednesday. It also unveiled its newest AI model.

– CNBC's Pia Singh, Jeff Cox, Fred Imbert, Gabrielle Fonrouge, Melissa Repko and Hayden Field contributed to this report.

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