US Stock Market Overview

NEW YORK (AP) — On Thursday, most U.S. stocks experienced growth; however, a significant decline in UnitedHealth Group hindered Wall Street’s overall performance.

Market Performance

The S&P 500 saw a minor increase of 0.1%, despite three-quarters of the stocks in the index rising. In contrast, the Nasdaq composite fell by 0.1%, following a turbulent trading session the previous day.

Impact of UnitedHealth Group’s Decline

The Dow Jones Industrial Average experienced a drop of 527 points, or 1.3%, largely influenced by UnitedHealth Group, which plummeted over 22% after reporting disappointing profits.

Notable Gains and Industry Reactions

Eli Lilly led the market with a gain of 14.3% after unveiling promising results for a new oral medication aimed at obesity and diabetes treatment. Additionally, energy stocks rebounded as crude prices recovered, with Diamondback Energy rising by 5.7% and Halliburton by 5.1%.

Concerns Over Trade and Tariffs

Technology stocks showed resilience after Taiwan Semiconductor Manufacturing Co. announced earnings that met expectations, noting no immediate impacts from trade tensions. However, TSMC’s CFO cautioned about potential future risks related to tariff policies.

Economic Uncertainty and Federal Reserve Dilemmas

The decline of UnitedHealth, now at its worst since 1998 due to a downscaled financial forecast, ushered in worries about the implications of tariffs, as economists fear they could trigger a recession. Federal Reserve Chair Jerome Powell reiterated the complexities the Fed faces, balancing inflation and economic support amidst ongoing uncertainties.

Global Market Reactions

Reports from the U.S. economy offered mixed signals, with a decline in unemployment applications suggesting job market strength, yet manufacturing in the mid-Atlantic region showed unexpected contraction. Meanwhile, stock markets in Europe faced slight declines, while Asian markets experienced gains amid a more optimistic economic environment.

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AP Business Writers Yuri Kageyama and Matt Ott contributed.