Quick overview

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Wall Street’s major indexes closed mixed on Tuesday as investors digested softer-than-expected U.S. inflation data.

The Dow Jones slipped, weighed down by a sharp drop in UnitedHealth shares, while the S&P 500 and Nasdaq advanced, driven by gains in the tech sector.

The Dow Jones Industrial Average fell 0.6% to 42,140.43 points, dragged down by UnitedHealth’s slump. Meanwhile, the S&P 500 rose 0.72% to 5,886.55, and the Nasdaq Composite jumped 1.61% to 19,010.08.

April’s Consumer Price Index (CPI) showed a moderate 0.2% increase, compared to a 0.1% decline in March. The figure came in below the market’s expectation of 0.3%, raising hopes for eventual interest rate cuts—though the Federal Reserve is now seen holding off until at least September. Markets still anticipate two 25-basis-point cuts before year-end. Several Fed officials, including Chair Jerome Powell, are scheduled to speak later this week.

Saudi Investment Boosts Sentiment

Adding fuel to the rally, Saudi Arabia announced a $600 billion investment in the U.S. across key sectors such as energy, aviation, artificial intelligence, and defense. The long-term collaboration could generate up to two million jobs in the U.S., offering a major boost amid an uncertain economic backdrop.

Tech stocks were the standout performers, with Nvidia soaring 5.63%, followed by Tesla (+4.93%) and Meta Platforms (+2.60%). The gains were further supported by easing trade tensions between the U.S. and China, which reduced investor concerns and lifted risk appetite.

On the downside, UnitedHealth Group plunged over 17%, dragging the Dow lower. The health insurance giant suspended its full-year guidance and announced the resignation of its CEO, prompting a sell-off in its shares.