Wall Street has dipped as elation from the US-China tariff truce faded for major indexes while UnitedHealth’s stock took a pummelling after a report of a fraud inquiry into the insurer.
UnitedHealth Group plunged 16 per cent to its lowest level since April 2020.
The Wall Street Journal reported that the US Department of Justice was conducting a criminal investigation into the company for possible Medicare fraud.
However, the health insurer said it had not been informed of a criminal probe by federal prosecutors.
Walmart will have to start raising prices later this month due to the high cost of tariffs, executives said, even as the retail giant’s US comparable sales surpassed expectations in the first quarter.
Its shares were down 4.8 per cent
In early trading on Thursdsay, the Dow Jones Industrial Average fell 128.62 points, or 0.31 per cent, to 41,922.44, the S&P 500 lost 19.46 points, or 0.33 per cent, to 5,873.03, and the Nasdaq Composite lost 123.27 points, or 0.64 per cent, to 19,023.53.
Speaking on the day, Federal Reserve chair Jerome Powell said US central bank officials felt they needed to reconsider the key elements around jobs as well as inflation in their current monetary policy approach.
US retail sales growth slowed in April while a Labor Department report showed the producer price index for final demand fell 0.5 per cent for the same month, compared to an expectation of a 0.2 per cent rise.
On an annual basis, producer prices came in at 2.4 per cent versus an estimate of 2.5 per cent.
“There will be a hump and pick up in prices but until we see how big that is and how lasting that is, the Fed should be able to remain patient,” said Jan Nevruzi, US rates strategist at TD Securities.
The data dump follows a relatively tame consumer price reading earlier this week, indicating that consumer prices rebounded moderately last month.
In results-driven moves, Cisco Systems gained 2.9 per cent after the networking-equipment maker raised its annual forecasts and named Mark Patterson its new CFO.
Only four out of the 11 S&P 500 sectors were trading in the green.
The energy sector fell the most, as oil prices slid about 3.0 per cent on expectations of a US-Iran nuclear deal that could result in sanctions easing.
Stocks have been see-sawing this week as equities jumped on Monday and Tuesday following a temporary ceasefire in the US-China tariff tensions.
The gains were enough to drag the S&P out of the red for the year – its first positive showing since late February – although it is still about 4.0 per cent shy of its record highs.
Many megacap and growth stocks pulled back, with Nvidia slipping 1.2 per cent while Tesla shed 2.8 per cent.
Foot Locker, soared 83.6 per cent after rival Dick’s Sporting Goods agreed to buy the footwear retailer for $US2.4 billion ($A3.7 billion).
Advancing issues outnumbered decliners by a 1.01-to-1 ratio on the NYSE while declining issues outnumbered advancers by a 1.28-to-1 ratio on the Nasdaq.
The S&P 500 posted four new 52-week highs and three new lows while the Nasdaq Composite recorded 17 new highs and 51 new lows.
https://thewest.com.au/business/markets/wall-street-edges-lower-as-trade-truce-rally-ebbs-c-18708087
