Megacap tech holds firm, but broader market wavers ahead of key U.S. data
📉 Dow Drags Lower, S&P and Nasdaq Hover Near Flat
The recent risk-on rally is showing signs of fatigue Thursday as Dow Jones futures drop 200 points, pressured by a sharp selloff in healthcare giant UnitedHealth (UNH).
Meanwhile:
- S&P 500 and Nasdaq futures are slightly negative, struggling to extend their three-day winning streak.
- Megacap tech remains the market’s backbone, with gains of 10% to 20% this week alone in names like Nvidia, Apple, and Amazon.
🚨 UnitedHealth Under Fire: 8% Drop After Medicare Probe News
The Dow’s weakness is being driven by its largest component, UnitedHealth, which plunged 8% in after-hours trading.
- A Wall Street Journal report revealed that the company is under federal investigation for potential Medicare fraud.
- The development could weigh on the broader healthcare sector, already under scrutiny amid rising regulatory risk.
đź’µ Dollar Stabilizes, Gold Hits One-Month Low
Markets also responded to fresh currency policy signals:
- The U.S. Dollar recovered after officials clarified it’s not being used as leverage in trade negotiations.
- Gold tumbled to a one-month low, as safe-haven demand faded amid relative policy clarity and equity resilience.
🔍 Key Data and Earnings on Deck
The next market catalysts are approaching fast:
- Wholesale inflation (PPI)
- Retail sales data
- Walmart earnings
These reports will offer critical insight into consumer strength, pricing pressure, and corporate health as investors reassess the Fed’s next move.
đź“Š Conclusion: Tech Steady, But Cracks Are Emerging
Despite tech’s strength, today’s pullback in Dow futures, corporate risk headlines, and upcoming economic data serve as a reminder: this rally has macro and sector-specific vulnerabilities.
Stay alert—earnings, inflation, and Washington’s next move could shift sentiment quickly.
