U.S. indexes diverged as a rebound in downtrodden chip stocks lifted one part of the market while weak earnings from UnitedHealth (UNH) weighed on another. Even with chip shares up, anxiety stalks tech after Nvidia's (NVDA) sharp losses due to trade policy and signs of falling demand from semiconductor equipment firm ASML (ASML). Today's booming earnings from Taiwan Semiconductor Manufacturing (TSM)—which said demand remains robust—only soothed worries slightly.

"The restrictions on Nvidia's H20 chip exports to China and ASML's missed orders have added to investor anxiety, sparking concerns over a potential slowdown in AI demand and the semiconductor sector," said Jeffrey Kleintop, chief global investment strategist at Schwab. "The developments have also raised concerns over the impact of tariffs on global companies, with economists scaling back their forecasts for GDP growth worldwide and the semiconductor sector being highly sensitive to economic cycles."

UnitedHealth fell nearly 20% this morning, hurting the Dow Jones Industrial Average ($DJI) even as chips supported the Nasdaq Composite ($COMP) in pre-market trading. Later today investors get earnings results from streaming giant Netflix (NFLX), and this morning's data included initial weekly jobless claims, which remained relatively low at 215,000, and housing starts and building permits. Investors also have their eye on developments in the trade war as President Trump posted of progress in talks with Japan and plans a meeting with Italy's prime minister.

Source: Schwab Center for Financial Research

The 10-year U.S. Treasury yield (TNX) is higher by ~5 basis points to 4.33%.

The U.S. Dollar Index ($DXY) is higher by 0.12 at 99.50.

WTI Crude Oil (/CL) is higher by 3.64% to $64.08/barrel.

Gold prices are slightly slipping from record high territory and have traded in a range of $3,296.40-$3,371.90, last seen trading lower by 0.74% to $3,321.50/oz.

Natural Gas prices have traded in a range of $3.19-3.33 and were last seen trading higher by 0.65% to $3.27.

Bitcoin (BTC) is higher by ~0.96% to $84,959.00.

Shares of Taiwan Semiconductor Manufacturing Co., Ltd. (TSM + $4.23 to $155.90) are trading higher this morning after the world's largest semiconductor foundry reported fiscal-year (FY) Q1 earnings-per-share that topped the FactSet consensus estimate. Revenues also topped expectations and were up 41.6% compared to the same period a year ago, while its operating profit margin came in north of forecasts. TSM maintained its 2025 revenue guidance and said it is not witnessing tariff impact on consumer behavior so far. Calls are slightly outnumbering puts with the April 17th 160.00 call being the highest volume contract (volume is 14,441).

Also trading to the upside this morning is Eli Lilly and Company (LLY + $89.24 to $824.04) after the pharmaceutical company announced positive results from a phase-three trial of its weight loss and diabetes pill. LLY said if the treatment is approved it is confident in its ability to launch the pill worldwide without supply constraints. Calls are modestly outnumbering puts, but the April 17th 800.00 put is seeing the highest activity (volume is 5,324).

New 52-week highs (29 new highs today): Banco Santander Chile ADR (BSAC + $0.30 to $23.79), Hertz Global Holdings Inc. (HTZ + $1.73 to $7.43), Yalla Group Ltd. (YALA + $0.34 to $6.60)

Some unusual call activity (~56:1 calls over puts) is being seen in autonomous vehicle technology company Aeva Technologies Inc. (AEVA - $0.03 to $7.14) which is primarily being driven by activity on the July 18th 10.00 call which saw various-sized blocks being bought at various times at various ask prices between $0.49-$0.60. Volume is 2,318 versus open interest is 941 so we can assume we have some fresh positioning here with bullish intent since the trades took place at their respective ask prices.

Dow component UnitedHealth Group Incorporated (UNH - $101.30 to $483.74) is gapping lower this morning after the insurance giant reported FY earnings-per-share of $7.20 (excluding non-recurring items) below the FactSet consensus estimate of $7.30. Revenues, although growing 9.8% year-over-year to $109.58 billion, came in south of the expected $111.54 billion. UNH also cut its full-year earnings outlook and cited pressure from rising care activity in its Medicare Advantage business and Medicare funding reductions. Calls are slightly outpacing puts, but the April 17th 450.00 put is seeing the most activity from traders (volume is 10,108).

Also trading to the downside this morning is Alcoa Corporation (AA - $1.28 to $23.79) after the aluminum producer reported FY Q1 revenue of $3.37 billion, below the FactSet consensus estimate of $3.47 billion. The revenue miss is overshadowing its earnings-per-share of $2.15 (excluding non-recuring items) that exceeded the anticipated $1.68. The company said it is actively engaged with administrations, governments, and policy makers in the U.S. and globally regarding the impact of tariffs on trade flows and the importance of primary aluminum to the U.S. economy. Calls are slight outnumbering puts with the May 16th 20.00 call seeing the most action from traders (volume is 1,526).

New 52-week lows (111 new lows today): Global Payments Inc. (GPN - $12.03 to $72.09), Novo Nordisk A/S ADR (NVO - $4.51 to $58.37), Vestis Corporation (VSTS + $0.14 to $7.58)

Some unusual put activity (~9:1 puts over calls) is being seen in financial services technology company Fidelity Information Services (FIS + $4.94 to $73.58) which is primarily being driven by activity on the May 16th 65.00 put. The bulk of the active is being driven by a 5,000-contract block that was bought for $0.75 when the bid/ask spread was $0.50 x $0.90. We know this block is a new position based on open interest of 168, and we can assume the intent is bearish since the trade took place above the midpoint of the bid/ask spread.

PPL Corp. (PPL + $0.73 to $36.01): Option volume is running at ~25x the daily average on this energy company which is primarily being driven by activity on the May 16th 36.00 call. Volume on this contract is 1,490 versus open interest of 44, so we know that the majority of the volume represents fresh positioning. The activity has been driven by various medium-sized blocks being bought around the same time for $0.78 each when the bid/ask spread was $0.75 x $0.80. We can assume the intent is bullish in nature since the trades took place above the midpoint of the bid/ask spread.

Samsara Inc. (IOT - $1.58 to $37.28): Option volume is running at ~20x the daily average on this software company which is being driven by activity on the May 16th 35.00 put. Volume on this contract is 7,219 versus open interest of 267 so we know we have some fresh positioning here. The bulk of the activity consisted of a 3,490 contract block that was bought at the ask price of $1.45, suggesting bearish intent.

Dynatrace Inc. (DT + $0.14 to $43.34): Option volume is running at ~15x the daily average on this technology company which is being driven by activity on the May 16th 50.00 call. Volume on this contract is 5,849 versus open interest of 214 so we know we have some fresh positioning here. The activity consisted of multiple medium-sized blocks being bought at various times at the ask prices between $0.30-$0.40, suggesting bullish intent.

The Cboe Volatility Index (VIX - 1.64 to 30.98) has been in negative territory all day (intraday range is 30.22-32.55), as equity markets are mixed around the midday mark (DJI - 353, SPX + 32, COMPX + 23). VIX option volume is below average today as the index is missing from the "Top Volume by Underlying" list. The volume put/call ratio is currently 0.42, with the highest volume contract the June 18th 16.00 put (volume is 44,234 vs. open interest of 116,414).