US stocks today: Wall Street opens mixed as corporate earnings roll in; S&P 500 up 0.20%, Dow Jones slips 0.62%
US stock markets opened on a mixed note on Tuesday as strong earnings from major companies lifted technology shares. However, a sharp sell-off in health insurance stocks pulled the Dow Jones Industrial Average lower amid concerns over future Medicare payments.At 9:30 am ET, the Dow Jones Industrial Average fell 305.69 points or 0.62 per cent, to 49,106.71. In contrast, the S&P 500 rose 13.94 points or 0.20 per cent, to 6,964.17. Meanwhile, the Nasdaq Composite gained 112.68 points or 0.48 per cent, to 23,714.03.Markets reacted to a fresh batch of corporate earnings ahead of the US Federal Reserve’s interest rate decision later this week. Technology and auto stocks found support, while healthcare shares declined sharply after the Trump administration proposed a Medicare Advantage payment increase of less than 1 per cent for 2027.Health insurers came under heavy pressure, dragging the Dow lower. UnitedHealth Group and Humana lost nearly 16 per cent of their value before the opening bell, while Elevance Health fell 7.9 per cent and CVS Health dropped 13 per cent, according to AP. Investors were disappointed by the lower-than-expected rate increase, which threatens profit margins in Medicare Advantage plans that cover Americans aged 65 and above.UnitedHealth, the largest provider of Medicare Advantage plans in the US, reported fourth-quarter profit and revenue close to estimates but warned that its revenue could decline in 2026. The stock is down more than 40 per cent since April, reflecting mounting concerns over funding cuts and rising healthcare costs.In contrast, shares of General Motors jumped nearly 5 per cent after the automaker beat quarterly profit estimates and announced a share buyback programme. GM also said it expects to reduce losses from electric vehicle production in 2026 as it scales back output.American Airlines rose about 4 per cent after issuing strong guidance for 2026, despite missing fourth-quarter profit targets. The airline said it lost $325 million in revenue due to the recent government shutdown.Investors are also watching earnings from several mega-cap companies due later this week, including Meta Platforms, Microsoft and Tesla on Wednesday, followed by Apple on Thursday.Attention remains on the Federal Reserve, which is expected to keep interest rates unchanged when it announces its policy decision on Wednesday. While the Fed has been cutting rates to support growth and employment, inflation remains above its 2 per cent target, limiting room for aggressive easing.Global markets were mixed. In Europe, Germany’s DAX was flat, France’s CAC 40 rose 0.4 per cent and Britain’s FTSE 100 gained 0.5 per cent. Asian markets ended mostly higher, led by South Korea’s Kospi, which surged 2.7 per cent, while Japan’s Nikkei climbed 0.9 per cent.In commodities, gold prices were steady at around $5,084 an ounce after hitting a record above $5,100 on Monday, as investors sought safe-haven assets amid global trade tensions and inflation concerns. Silver fell nearly 4 per cent. Oil prices were largely unchanged, while the U.S. dollar weakened slightly against the yen and euro. Markets remained volatile as investors weighed earnings, central bank policy and rising geopolitical and trade risks.
