Most American actions climbed on Thursday, but the worst drop in United Group In a quarter of a century, Wall Street in check.
The S&P 500 increased by 0.1%, even if three out of four shares climbed into the index. The Nasdaq Composite slipped 0.1% in a mainly more stable performance after its sale the day before.
The industrial average of Dow Jones fell by 527 points, or 1.3%, largely due to the stock. Unitedhealth Group has lost more than a fifth of its value and dropped by 22.4% following a lower than expected profit ratio.
Eli Lilly helped lead the track to Wall Street, which jumped 14.3% after the drug manufacturer said encouraging results for a pill once a day that could help treat people with obesity and diabetes.
Business actions in the oil and gas industry also joined after the price of crude has increased to recover some of its strong losses this month. Diamondback Energy jumped 5.7% and Halliburton climbed 5.1%.
The S & P / TSX composite index closed 86.02 points to 24 192.81.
Technological actions were held firmly after Global Heavyweight Taiwan Semiconductor Manufacturing Co. declared a profit for the last quarter which corresponded to the expectations of analysts. Perhaps even more important, he also declared that he had not seen any drop in activity of his customers due to the trade war of President Donald Trump, as some other companies have suggested.
However, the company known as TSMC was prudent. “Although we have not seen any change in the behavior of our customers so far, the uncertainties and risks of the potential impact of tariff policies exist,” said director Wendell Huang. TSMC shares that are negotiated in the United States added 0.1%.
What happened to Unitedhealth?
They helped to compensate for the drop in Unitedhealth, its worst since 1998, after having reduced its forecasts for financial results this year. He was surprised by the care that his Medicare Advantage customers obtained doctors and ambulatory services, which were above the expectations of the company.
The company’s first profits have been missing since 2008 and the support for dark forecasts have sent investors to the exit, as they hoped that the American insurer would maintain his profit -based prospects on the expectations that the demand for medical services would be similar to 2024. Unitedhealth has historically provided a conservative forecast, said at least two investors.
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“No one expected this level of breach or a cup,” said Kevin Gade, Bahl & Gaynor operating head, who has the actions of United.
The American health insurance industry has been grappling with increased costs since mid-2023 due to an increase in the demand for health services within the framework of health insurance plans supported by the government for the elderly or people with disabilities.
While other insurers collapsed in the news of United, they recovered certain losses after Rival Elevance Health declared that he was sticking to his current quarterly perspectives, even if the unitedhealth actions continued to flow.
Another high -level stock, NVIDIA, weighed on the market after flowing a second consecutive day after its disclosure that the new export limits on fleas to China could harm its first quarter of $ 5.5 billion. It sank 2.9% and was the second heaviest weight on the S&P 500.
All in all, the S&P 500 added 7.00 points to 5,282.70. The industrial average of Dow Jones fell from 527.16 to 39,142.23, and the composite Nasdaq slipped from 20.71 to 16,286.45.
Price uncertainty remains
Uncertainty is always high on prices, that Trump wants to bring back manufacturing jobs to the United States and reduce how much it is important than it exports. Economists fear that prices can cause a recession if they were fully implemented and left for a while.
Trump offered encouraging signals on Thursday that negotiations with other countries could cause lower prices, which Wall Street hopes.
The uncertainty about what will happen in the deployment of Trump’s Trump prices, however, could damage the economy by itself. The president of the federal reserve, Jerome Powell, helped send lower actions on Wednesday when he reiterated that Trump’s prices seem to be more important than the central bank did not expect, which could in turn slow the economy and increase inflation more than it had thought previously.
This could set up a dilemma for the Fed. This could reduce interest rates to help the economy, but it would also push higher inflation.
He has no good tool to repair both at the same time. Powell again said on Wednesday that the Fed would expect to see how the conditions are going more before passing interest rates.
Trump criticized this position on Thursday, saying that the Fed is “still too late and bad”. He also said: “Powell’s termination cannot come quickly enough!”
It could scare Wall Street. An independent Fed capable of acting without influence of the White House is one of the main reasons why the United States has benefited from its reputation as a safe place to invest. History suggests that central banks with more autonomy tend to have savings with lower and more stable inflation.
Research also suggests that Trump’s previous attacks on Fed in favor of the drop in interest rates may have helped stimulate expectations on the financial markets for lower rates, which may have had some influence on the Fed. But the conditions are different this time from the moment when inflation was low during Trump’s first term.
“This lower rate request could turn against the markets if the markets perceive that in the future, the Fed will be less attached to low and stable inflation,” said Francesco Bianchi, professor of economics at Johns Hopkins University.
On the bond market, the yield on the 10 -year treasure increased to 4.32%, compared to 4.29% Wednesday evening. He had relaxed for much of this week, after the frightening climb last week. This sudden ascent last week had raised concerns that Trump’s frantic movements in his trade war could allow investors around the world to lose confidence in American investments as the safer in the world.
The reports Thursday morning came to mix on the American economy. One said that fewer American workers asked for unemployment benefits last week that economists were expecting. This is the last signal that the labor market remains relatively solid. But a second report indicates that manufacturing in the region of the Atlantic environment has unexpectedly went to the contraction of growth.
In stock markets abroad, the indices slipped 0.6% in France and 0.5% in Germany. The European Central Bank has reduced its main interest rate, which often increases equity prices. But investors around the world have been expecting this decision for some time.
In Asia, the clues were stronger. Actions increased 1.6% in Hong Kong and 1.3% in Japan.
Commercial editors at Yuri Kageyama and Matt Ott contributed. Additional Canadian Press and Reuters files.