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Market Update: Chip Stocks Underperform, UnitedHealth Plunges

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Market Update: Chip Stocks Underperform, UnitedHealth Plunges

Published: by Omor IE

Key Points

  • Chip stocks and tech stocks are underperforming today, after solid gains in recent weeks.

  • Some healthcare stocks are still sliding.

  • Weaker macro data caused the stock market to be in the red earlier this morning.

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Chip stocks and some tech stocks have underperformed so far today. This is a cooldown from a sustained recovery rally they have seen. Buying pressure is not as high today due to macroeconomic data coming in weaker than expected, and many chip stocks having already made a substantial recovery in recent weeks.

Healthcare and pharma-related stocks have also underperformed in the past week, which is mainly due to President Donald Trump pledging to slash drug costs significantly.

Here’s a market update as of 11:00 AM (ET) today.

  • The S&P 500 is down 11.51 points, or 0.2%.
  • The Nasdaq Composite is down 113.5 points, or 0.59%.
  • The Dow Jones Industrial Average is down 78.29 points, or 0.19%.

UnitedHealth Falls Again

UnitedHealth Group’s (NYSE: UNH) misfortunes are only getting worse. The company first declined in April due to an underwhelming earnings report, and then declined again earlier this week after its CEO suddenly resigned and the company suspended its guidance for the year.

Today, the stock fell 17% after The Wall Street Journal reported that the Department of Justice is investigating the company for criminal Medicare fraud. It is now down over 56% in just the past month alone. Many are calling it a falling knife after this latest decline.

Tech, Chip Stocks Down

  • Tesla (NASDAQ: TSLA) is down 2.9%.
  • Amazon (NASDAQ: AMZN) is down 2.8%.
  • AMD (NASDAQ: AMD) is down 2.4%.
  • Meta Platforms (NASDAQ: META) is down 1.4%.
  • Nvidia (NASDAQ: NVDA) is down 1.2%.

PLTR, QCOM, and INTC are also down.

Notable Losers Today

  • New Fortress Energy (NASDAQ: NFE) is down 60% after it posted a quarterly loss in its Q1 earnings report. All segments performed badly.
  • Shoals Technologies Group (NASDAQ: SHLS) is down 24.5% as major investors seem to be selling.
  • Fiserv (NYSE: FI) is down 14.3%. It is reportedly down due to comments about Clover volume growth being similar in Q2 as Q1.
  • DICK’S Sporting Goods (NYSE: DKS) is down 14.1% due to reports of the company buying Foot Locker for $2.4 billion.
  • Bitdeer Technologies (NASDAQ: BTDR) is down 10.7% after it posted a Q1 loss and declining revenue.

Notable Gainers Today

  • Foot Locker (NYSE: FL) is up 85.2% due to DICK’s Sporting Goods buying it.
  • Aeva Technologies (NASDAQ: AEVA) is up 25.35% after a strong Q1 report. Revenue beat estimates by 44.34%, and EPS beat estimates by 6.9%.
  • Ibotta (NYSE: IBTA) is up 22.4% after a strong Q1 report. EPS at $0.02 beat $0.01 estimates.
  • Boot Barn Holdings (NYSE: BOOT) is up 19.4% despite missing revenue and earnings estimates, but it expanded its store count, and same-store sales grew 6%.
  • NV5 Global (NASDAQ: NVEE) is up 16.8% as Acuren Corporation is merging with a company to create a “$2 billion revenue powerhouse”.

DLO, VEON, NXT, and NTES are all up by double digits.

The image featured at the top of this post is ©zignal_88 / Shutterstock.com.

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