Stocks closed the week with a mixed performance as concerns over tariffs and economic outlook lingered. The S&P 500 ended slightly higher, while the Nasdaq slipped, and the Dow Jones Industrial Average took a significant hit, mainly due to UnitedHealth’s sharp decline.
UnitedHealth’s profit forecast slash sent shockwaves through the market, causing its stock to plummet by 22%, creating a ripple effect on other health insurers like Humana, CVS Health, and Centene. The company’s woes led to a $120 billion market value loss, a rare occurrence outside the tech sector.
Large-cap tech stocks faced pressure following news of U.S. restrictions on chip exports to China. Nvidia and Broadcom were among the key decliners, while Netflix managed to rise in anticipation of strong earnings, which indeed exceeded expectations, causing its shares to surge in after-hours trading.
Other notable movers included Eli Lilly, whose shares soared on positive trial results for a weight-loss pill, and American Express, which reported better-than-expected earnings on robust consumer spending.
Moreover, Snap-on’s disappointing first-quarter results attributed to macroeconomic uncertainty led to a sharp decline in its stock. The tech sector’s weakness continued as Nvidia’s export restrictions raised concerns about broader impacts on AI-related stocks.
As the market closed the week with losses, analysts highlighted the impact of ongoing trade tensions and economic uncertainties on stock performance. Investors closely monitored key support and resistance levels on various stocks, including Nvidia, to gauge market trends.
Overall, the week’s trading reflected a volatile market influenced by geopolitical and economic factors, underscoring the importance of monitoring key developments for informed investment decisions.