UnitedHealth’s stock drops over 22% for worst day since 1998. Here’s why
Global News
Most U.S. stocks climbed Thursday, but the worst drop for UnitedHealth Group in a quarter of a century on the Dow Jones kept Wall Street in check.
Most U.S. stocks climbed Thursday, but the worst drop for UnitedHealth Group in a quarter of a century kept Wall Street in check.
The S&P 500 edged up by just 0.1%, even though three of every four stocks climbed in the index. The Nasdaq composite slipped 0.1% in a mostly steadier performance following its sell-off the day before.
The Dow Jones Industrial Average dropped 527 points, or 1.3%, largely because of just stock. UnitedHealth Group lost more than a fifth of its value and fell 22.4% following a weaker-than-expected profit report.
Helping to lead the way higher on Wall Street was Eli Lilly, which jumped 14.3% after the drugmaker reported encouraging results for a once-daily pill that could help treat people with obesity and diabetes.
Stocks of companies in the oil-and-gas industry also rallied after the price of crude rose to recover some of its sharp losses taken this month. Diamondback Energy jumped 5.7%, and Halliburton climbed 5.1%.
The S&P/TSX composite index closed up 86.02 points at 24,192.81.
Technology stocks held firmer after global heavyweight Taiwan Semiconductor Manufacturing Co. reported a profit for the latest quarter that matched analysts’ expectations. Perhaps more importantly, it also said it hasn’t seen a drop-off in activity from its customers because of President Donald Trump’s trade war, as some other companies have suggested.
Still, the company known as TSMC was cautious. “While we have not seen any changes in our customers’ behavior so far, uncertainties and risks from the potential impact from tariff policies exist,” Chief Financial Officer Wendell Huang said. TSMC’s stock that trades in the United States added 0.1%.
