Key Points
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Health insurance stocks fell sharply after proposed limits on Medicare Advantage payments.
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UnitedHealth shares dropped nearly 20 percent, dragging the Dow lower.
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The S&P 500 and Nasdaq rose, driven by gains in technology and chip stocks
US stock markets finished Tuesday with mixed results as heavy losses in health insurance stocks weighed on the Dow Jones Industrial Average, while technology shares pushed the S&P 500 to a fresh record high.
The Dow fell about 0.8 percent after UnitedHealth Group shares dropped nearly 20 percent. The company issued weaker than expected revenue guidance for 2026, adding pressure to an already struggling health insurance sector. Humana, CVS Health and Elevance Health also posted double digit declines.
Investor concerns were triggered by news that the US government is considering holding Medicare Advantage payment increases close to flat next year. The proposal would represent a much smaller rise than insurers and Wall Street had anticipated and could significantly impact companies that rely heavily on Medicare Advantage for revenue.
In contrast, broader markets showed strength. The S&P 500 gained 0.4 percent to reach its first record in two weeks, while the Nasdaq rose nearly 0.9 percent, supported by strong performance in semiconductor stocks including Nvidia, Micron and Broadcom.
Outside healthcare and technology, several companies moved sharply on earnings and business updates. General Motors climbed after reporting results that beat expectations. Micron advanced following news of a major investment plan aimed at boosting memory chip production. Pinterest shares declined after announcing workforce reductions as part of a shift toward artificial intelligence.
The US dollar continued to weaken after President Trump said he was not concerned about the recent slide in the currency. Meanwhile, precious metals were mixed, with gold ending nearly flat and silver falling sharply from its recent record levels.
Markets are now watching for further clarity on government healthcare policy and upcoming corporate earnings as investors assess how long the technology rally can offset weakness in other sectors.
