Stocks were mixed late Thursday morning as the market struggles to rebound from yesterday’s sell-off amid lingering concerns about tariffs and the outlook for the economy.
The S&P 500 was up 0.4% in recent trading, while the tech-heavy Nasdaq Composite slipped 0.1%. The Dow Jones Industrial Average dropped 1.1%, or more than 400 points, as shares of UnitedHealth (UNH) plunged more than 20% after the company slashed its profit forecast amid rising medical costs.
The major indexes closed sharply lower on Wednesday as chip stocks tumbled on news of U.S. restrictions on exports to China and as investors digested comments from Federal Reserve Chair Jerome Powell. The Fed chief said the tariffs the Trump administration is imposing would raise inflation and lower economic growth, posing a challenge for the central bank as it decides interest rate policy.
The UnitedHealth news weighed on shares of other health insurers Thursday morning. Humana (HUM) was down 7%, while CVS Health (CVS) and Centene (CNC) each fell about 2%,
Large-cap technology stocks were mostly lower after yesterday’s steep downturn. Chipmakers Nvidia (NVDA) and Broadcom (AVGO) were down 3.5% and 2%, respectively, while Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG) and Tesla (TSLA) also lost ground. Apple (AAPL) was up about 1%, while Meta Platforms (META) inched higher.
Shares of Netflix (NFLX) were up 1% ahead of the highly anticipated release of the streaming giant’s earnings report, which is scheduled for after the closing bell today.
Among other noteworthy movers this morning, shares of Eli Lilly (LLY) jumped 13%, leading S&P 500 advancers, on news of a successful late-stage trial of a weight loss pill. Shares of Novo Nordisk (NVO), the maker of blockbuster drugs Ozempic and Wegovy, sank more than 6%.
Oil and gas producer Diamondback Energy (FANG) and oilfield services company Baker Hughes (BKR) rose 5% and 2%, respectively, as oil prices added to the previous session’s gains. West Texas Intermediate futures, the U.S. crude oil benchmark, were up 2.8% at $64.20 per barrel.
Gold futures were down 1% at $3,310 an ounce after hitting another record high this morning of around $3,370. The precious metal has been steadily gaining ground as investors seek safe havens amid the concerns about tariffs.
The yield on the 10-year Treasury note, which influences borrowing costs on all sorts of loans, was at 4.32%, up from 4.28% at yesterday’s close.
Bitcoin was trading at $84,500 recently, up from an earlier low of about $83,700.
UnitedHealth Plunges as Company Slashes Profit Forecast
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Shares of UnitedHealth Group (UNH) fell sharply Thursday after the healthcare giant’s first-quarter results fell short of analysts’ estimates and it cut its profit forecasts for 2025, amid rising costs associated with its Medicare business.
UnitedHealth reported adjusted earnings per share (EPS) of $7.20 on revenue that rose 10% year-over-year to $109.58 billion. Analysts polled by Visible Alpha had expected $7.25 and $111.46 billion, respectively.
The Eden Prairie, Minn.-based company lowered its 2025 EPS outlook to a range of $24.65 to $25.15 and its adjusted EPS projection to $26 to $26.50. Last quarter, UnitedHealth said it expected to generate full-year EPS of $28.15 to $28.65 and adjusted EPS from $29.50 to $30.00.
UnitedHealth attributed the outlook cuts to “heightened care activity indications” in its Medicare Advantage business, and “unanticipated changes in the profile of Optum Health members impacting planned 2025 reimbursement.”
CEO Andrew Witty said the company “did not perform up to our expectations, and we are aggressively addressing those challenges to position us well for the years ahead.”
UnitedHealth shares were down 23% in recent trading, pushing the Dow Jones Industrial Average sharply lower. Shares of other health insurers including CVS Health (CVS), Humana (HUM), Elevance Health (ELV), and Centene (CNC) were dragged lower Thursday by the cost concerns.
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UnitedHealth shares had entered the day up about 16% since the start of the year, recovering from a February slump following a report that the U.S. Department of Justice was investigating the company’s diagnosing practices.
Eli Lilly Soars on Weight -Loss Pill Trial Results
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Shares of Eli Lilly (LLY) jumped in early trading Thursday after the pharmaceutical company released late-stage clinical trial results for its oral weight-loss drug that “demonstrated statistically significant efficacy results and a safety profile consistent with injectable GLP-1 medicines.”
The first of seven Phase 3 trials for orforglipron showed it was more effective than a placebo at causing weight loss and a reduction in A1C, a long-term blood sugar metric used in evaluating diabetes treatments, Lilly said. The reductions in weight and A1C increased for patients taking higher doses of the drug.
The drug had similar gastrointestinal side effects to Eli Lilly’s injectible weight-loss drugs Mounjaro and Zepbound, including nausea, indigestion, and diarrhea. The rate of patients reporting the side effects also varied among different doses, affecting 10% to 26% of patients.
Eli Lilly said it plans to present the data at a conference and in a peer-reviewed journal. Results from other trials for orforglipron will be released later this year, and the company expects to file for Food and Drug Administration (FDA) approval as a type 2 diabetes treatment in 2026.
Lilly, rival Novo Nordisk (NVO), and others are in development of new weight-loss treatments that can be taken orally rather than injected. Pfizer (PFE) halted an oral drug trial earlier this week after a patient reported a liver injury.
Eli Lilly shares were up 14% in recent trading, leading S&P 500 gainers. Shares of Novo Nordisk, the maker of blockbuster drugs Ozempic and Wegovy sank more than 7%.
Watch These Nvidia Levels After Wednesday’s Plunge
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Nvidia (NVDA) shares lost ground in early trading after falling nearly 7% Wednesday on news the company will take a $5.5 billion charge as a result of U.S. restrictions on exports of its AI chips to China.
Nvidia shares have staged a modest recovery above this month’s low but have lost about a firth of their value since the start of the year as of Wednesday’s close amid uncertainty over Washington’s trade policies and big tech AI spending.
After attracting buying interest near the lower trendline of a falling wedge pattern last week, Nvidia shares rallied sharply before running into selling pressure near the pattern’s top trendline.
It’s worth noting that although the stock fell sharply in Wednesday’s trading session, the price formed a doji, a candlestick pattern suggesting indecision between buyers and sellers.
Investors should watch key support levels on Nvidia’s chart around $96 and $76, while also monitoring crucial resistance levels near $130 and $150.
Nvidia shares were down 1.3% at around $103 in recent trading.
Read the full technical analysis piece here.
Major Stock Index Futures Mixed After Yesterday’s Sell-Off
3 hr 26 min ago
Futures tied to the Dow Jones Industrial Average were down 1.4%.
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S&P 500 futures rose 0.5%.
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Nasdaq 100 futures were up 0.9%.
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