UnitedHealth Shares Plunge Nearly 20%, Dragging Dow Jones Down by 700 Points

While the S&P 500 and Nasdaq attempt a recovery, the Dow Jones is taking a hit—largely due to a dramatic 20% drop in UnitedHealth shares. The health insurance giant revised its outlook downward, triggering a wave of investor concern and weighing heavily on the index.

UnitedHealth’s announcement has cast a shadow over the broader market, though pressure is also being felt elsewhere. Shares in American Express and homebuilding company D.R. Horton have dipped slightly following their latest financial results, adding to the cautious sentiment among investors.

However, there are also signs of resilience in other sectors. Taiwan Semiconductor posted solid figures, which are likely to fuel a rebound in AI and semiconductor stocks. This positive momentum could act as a counterweight to the negative impact seen in other areas of the market.

Meanwhile, pharmaceutical giant Eli Lilly is off to a strong start today, with its shares trading significantly higher. The surge follows encouraging results from the third phase of clinical trials for a new weight-loss pill targeting type 2 diabetes and obesity. When taken daily at the highest dosage, participants reported an average weight reduction of around 16 pounds over a 40-week period.

This development marks a notable shift from injectable treatments, offering a more convenient option in tablet form. If approved, the pill could represent a major step forward in the battle against obesity and diabetes, with strong commercial potential.

Despite the drag caused by UnitedHealth, today’s market is presenting a mixed picture—one where losses in health insurance and financials are being partially offset by gains in tech and pharmaceuticals.