From Yahoo Finance: 2025-04-17 09:51:00

UnitedHealth Group Inc. is causing a double-digit selloff, dragging down the Dow Jones Industrial Average by 1.2% on Thursday. The S&P 500 Index, however, gained up to 0.6%. This rare divergence between the two indexes hasn’t been seen since 1954. UnitedHealth’s 18% plunge was due to an earnings miss and lowered annual forecast.

The Dow and S&P 500 indexes generally move together, but UnitedHealth’s significant drop created a divergence. The Dow, which is price-weighted, is more impacted by high-priced stocks like UnitedHealth, while the S&P 500 is market-cap-weighted. UnitedHealth’s profit fell short of expectations, leading to a rare outlook cut for the year.

Despite market turmoil this year, the Dow has only fallen 6.8%, performing better than the S&P 500’s 10% drop and the Nasdaq 100’s 13% decline. UnitedHealth, the top-weighted stock on the Dow, saw its biggest drop since 1999 and lowered its earnings forecast. The company typically forecasts conservatively and adjusts as the year progresses.

UnitedHealth’s tumble impacted the Dow’s ranking, with Goldman Sachs, Microsoft, and Home Depot following. The S&P 500’s top spots are held by tech giants like Apple, Microsoft, Nvidia, Amazon, and Meta Platforms. The broader stock market edged higher as traders analyzed earnings reports amidst President Trump’s tariff strategy.



Read more at Yahoo Finance: Dow Faces Historic Divergence From S&P After UnitedHealth Plunge