UnitedHealth Miss Hurts Dow, Market Indices Fall

UnitedHealth Group reported weaker-than-expected Q1 earnings and lowered its 2025 adjusted earnings forecast to $26-$26.50 per share, significantly below earlier guidance, primarily due to higher-than-expected medical costs in its Medicare Advantage business. This led to a 9.4% drop in UnitedHealth stock, causing the Dow Jones Industrial Average to plunge over 600 points and triggering losses in other health insurers, including CVS Health and Humana. Broader market indices, such as the S&P 500 and Nasdaq, also posted losses amid increased investor caution. Ongoing US-Japan tariff negotiations and concerns about trade policy impacts on inflation and economic growth further contributed to market volatility. Despite stable jobless claims data, all major indexes were on track for weekly declines. UnitedHealth's CEO acknowledged the disappointing results and committed to addressing the company's challenges to restore earnings growth.