UnitedHealth lifts Dow; S&P and Nasdaq flat amid increasing bond yields, reports ET HealthWorld

In a mixed trading session on Tuesday, the Nasdaq and the S&P 500 remained relatively unchanged due to higher Treasury yields impacting equities. However, the Dow Jones Industrial Average saw gains driven by positive results from UnitedHealth Group, pushing the health insurer’s stock up by 5.6%.

The rise in Treasury yields, reaching five-month highs, was influenced by strong U.S. retail sales data indicating a robust start to the first quarter. The market sentiment seemed to be shifting towards a view of potentially prolonged interest rate hikes as indicated by Fed rate expectations following the CPI print last week.

Israel’s war cabinet was scheduled to convene for the third time in response to Iran’s direct attack. Additionally, upcoming speeches by policymakers like Federal Reserve Chair Jerome Powell were anticipated to provide insights into the central bank’s stance on policy easing.

Despite the overall market stability, both the S&P 500 and the Nasdaq were approximately 4% below their recent record highs, reflecting a recalibration of rate cut expectations for the year. Money market participants signaled a reduction in anticipated rate cuts from 150 basis points at the beginning of the year to 42 basis points currently.

At midday, the Dow Jones Industrial Average was up by 0.23%, while the S&P 500 and the Nasdaq were down slightly. Companies such as Morgan Stanley, Bank of America, Johnson & Johnson, and Tesla experienced stock fluctuations based on quarterly performance results and internal developments.

Market dynamics favored declines over advances, with sectors like real estate and utilities facing significant downturns. While the outlook remains nuanced, investors are closely monitoring economic indicators and central bank announcements to gauge future market movements.