The stock market pressure intensified today as losses in health insurers and semiconductor firms pushed major indexes into negative territory. Early optimism faded as traders digested mixed economic data, disappointing corporate earnings, and escalating global trade tensions.
The S&P 500 Index (INDEXSP:.INX) dipped by -0.08%, the Dow Jones Industrial Average (INDEXDJX:.DJI) fell sharply by -1.59%, and the Nasdaq 100 (INDEXNASDAQ:NDX) was off -0.26%. Weakness in the healthcare and tech sectors overwhelmed upbeat trade news and signs of labor market strength.
UnitedHealth’s Outlook Cuts Deep into Health Sector
One of the main sources of stock market pressure today was the sharp decline in health insurance stocks. Shares of UnitedHealth Group Inc (NYSE:UNH) plunged over 21% after the company slashed its full-year earnings forecast to $26.00–$26.50 per share, well below the $29.73 consensus.
Other insurers followed suit:
- Humana Inc (NYSE:HUM): down over 8%
- Elevance Health Inc (NYSE:ELV) and CVS Health Corp (NYSE:CVS): each down over 6%
- Centene Corp (NYSE:CNC) and Molina Healthcare Inc (NYSE:MOH): declined between 3% and 4%
- Cigna Group (NYSE:CI): down over 1%
This broad decline in the health sector weighed heavily on investor confidence, especially given the sector’s defensive reputation during volatile times.
Chip Stocks Slump Again on US-China Tensions
Adding to the stock market pressure, semiconductor stocks continued their slide for a second day. The trigger? Ongoing restrictions on chip exports to China. The U.S. government barred Nvidia Corp (NASDAQ:NVDA) from selling its H20 chips to China, knocking the stock down another 4%, following a 6% drop the previous day.
Other major chipmakers also took a hit:
- Intel Corp (NASDAQ:INTC) and Micron Technology Inc (NASDAQ:MU): down more than 2%
- Advanced Micro Devices Inc (NASDAQ:AMD), Broadcom Inc (NASDAQ:AVGO), ARM Holdings Plc (NASDAQ:ARM), and KLA Corp (NASDAQ:KLAC): all dropped over 1%
Tensions between the U.S. and China worsened after Beijing ordered airlines to halt new Boeing Co (NYSE:BA) aircraft deliveries, following American restrictions on chip exports.
Energy Sector Provides Some Relief
One bright spot amid the stock market pressure was the energy sector, which saw a lift from rising oil prices. West Texas Intermediate (WTI) crude climbed over 1% to a 1.5-week high, boosting energy producers:
- Diamondback Energy Inc (NASDAQ:FANG) rose over 4%
- APA Corp (NASDAQ:APA), ConocoPhillips (NYSE:COP), and Occidental Petroleum Corp (NYSE:OXY) each gained more than 3%
- Exxon Mobil Corp (NYSE:XOM) and Chevron Corp (NYSE:CVX): up over 2%
Oil’s strength helped cushion losses elsewhere, particularly in energy-heavy indexes.
Mixed Economic Data Fuels Uncertainty
Economic indicators provided a blurry outlook, further contributing to stock market pressure. Weekly jobless claims came in better than expected, dropping to a two-month low of 215,000, signaling a strong labor market. However, housing starts fell 11.4% in March, while the Philadelphia Fed business survey plunged to a two-year low of -26.4.
Fed officials, including New York President John Williams, reiterated that interest rate cuts were not imminent. The market is currently pricing in only a 14% chance of a rate cut at the May FOMC meeting.
Global Markets and Tariffs Add to Volatility
International markets were mixed:
- Japan’s Nikkei 225 rose 1.35%
- China’s Shanghai Composite gained 0.13%
- Euro Stoxx 50 fell 0.85%
Meanwhile, trade uncertainty persists. President Trump announced progress in U.S.-Japan talks, but tariffs remain a headwind. Recent policy changes have led to retaliatory moves, including China’s decision to raise tariffs on U.S. goods to 125%.
Outlook: Volatility Likely to Continue
With Q1 earnings rolling in, inflation still elevated, and global trade disputes unresolved, stock market pressure is unlikely to ease soon. Investors will be watching closely as companies like Netflix Inc (NASDAQ:NFLX) and American Express Co (NYSE:AXP) release earnings.
In the meantime, volatility appears here to stay as markets balance optimism from trade and labor data against uncertainty from geopolitics, health insurer woes, and tech export restrictions.
Featured Image – Freepik
