Stock Markets Split as Dow Jones (DJIA) Hit by HealthCare Shock, NASDAQ Surges

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U.S. markets ended mixed as softer-than-expected inflation data lifted tech stocks, while a steep plunge in UnitedHealth shares dragged down the Dow.

Markets React to CPI Surprise and Corporate Developments

Wall Street delivered a split verdict Tuesday, as investor optimism over cooling inflation buoyed tech and growth stocks, while heavy losses in healthcare weighed down the Dow Jones Industrial Average.

The market’s upward momentum was largely driven by the latest U.S. Consumer Price Index (CPI) report, which showed both headline and core inflation rising by 0.2%—below economist expectations of 0.3%. The softer reading boosted hopes that the Federal Reserve might be closer to easing monetary policy later this year, giving risk assets a strong tailwind.

In response, the NASDAQ Composite posted an impressive 1.61% gain, bringing the tech-heavy index within striking distance of its year-end 2024 closing level—just 1.56% away. The S&P 500 also finished in the green, rising 0.72%, and managing to cross into positive territory for the year with a 0.08% year-to-date gain.

Dow Jones Reverses Lower

However, the Dow Jones Industrial Average failed to keep pace, shedding 0.64% as a sharp selloff in UnitedHealth Group (UNH) wiped out roughly 400 points from the index. Shares of UnitedHealth plunged nearly 18% after the healthcare giant unexpectedly announced the resignation of CEO Andrew Witty and suspended its 2025 earnings guidance. The company cited rising medical costs and uncertainty around Medicare Advantage payouts as key concerns, further rattling investor confidence.

Dow Jones Industrial Average Chart Daily – Failing the First Test at the 200 SMA

The sharp drop in UNH, a heavyweight in the Dow, overshadowed broader market gains and dragged the index deeper into the red for 2025, now down 0.95% year-to-date.

Closing Levels for Major U.S. Indices – Market Recap

Trading Day Overview:

Dow Jones Industrial Average:
▸ Fell -269.67 points or -0.64% to close at 42,140.43
▸ UnitedHealth (UNH) was the main drag, plunging -17.83% after the resignation of its CEO and the suspension of 2025 profit guidance
▸ UNH’s decline alone shaved approximately 400 points off the Dow, magnifying the index’s underperformance

S&P 500 Index:
▸ Rose +45.36 points or +0.72% to 5,886.55
▸ Gains were driven by strength in tech, AI, and clean energy sectors

NASDAQ Composite:
▸ Surged +301.74 points or +1.61% to settle at 19,010.08
▸ Continued momentum from AI-related and growth stocks supported the index’s outperformance

Russell 2000 (Small Caps):
▸ Advanced +10.15 points or +0.49% to 2,102.34
▸ Broader market optimism lifted smaller-cap names, albeit with less intensity than large tech

Top Stock Movers – Big Winners of the Day

First Solar (FSLR):
▸ Jumped +22.63%, riding tailwinds from clean energy demand and favorable policy expectations
▸ Boosted by sector rotation and recent analyst upgrades

Super Micro Computer (SMCI):
▸ Soared +15.99% as enthusiasm around AI infrastructure and server demand continues to surge
▸ Remains a key AI hardware play with strong investor interest

Robinhood Markets (HOOD):
▸ Gained +8.93%, potentially boosted by increased retail investor activity and rising crypto volumes

Palantir Technologies (PLTR):
▸ Rose +8.10%, extending gains from recent defense and AI-related contract news

Rocket Companies (RKT):
▸ Added +8.10%, benefitting from a pullback in Treasury yields and renewed interest in mortgage tech

Conclusion: Diverging Paths for Indexes

Today’s market showed a clear divergence between tech-heavy and healthcare-weighted indices. While the Dow underperformed due to the UNH-led healthcare slump, the NASDAQ and S&P 500 surged ahead, powered by tech stocks and trade deal energy optimism. The session reflects a continuing sector rotation, with investors favoring growth and innovation plays, while staying cautious on legacy sectors facing regulatory or cost pressures.

Dow Jones Index Live Chart

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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