Dow Jones and S&P500: UnitedHealth Tanks, Coinbase Soars in Mixed US Indices

Stocks Hold Ground After Monday’s Surge as CPI Cools and Tariff Fears Ease

U.S. equity futures hovered near flat early Tuesday, following Monday’s sharp rally driven by cooling inflation data and progress on U.S.-China trade talks. S&P 500 futures edged up just 0.01%, while Nasdaq-100 futures gained 0.3%. Dow Jones futures lagged, down 0.2%, dragged by a steep drop in UnitedHealth shares. Traders are balancing a solid CPI report with fresh corporate and geopolitical headlines.

Is Inflation Finally Losing Steam?

The consumer price index rose 2.3% year over year in April, slightly below economists’ expectations of 2.4%. Core CPI, excluding food and energy, held steady at 2.8%, matching consensus. Month-over-month, both headline and core inflation rose 0.2%. The data offered relief to investors concerned about persistent price pressures and added confidence to expectations that the Fed could stay on hold. Lower inflation bolsters the case for equities, especially in rate-sensitive sectors.

How Did U.S.-China Trade Talks Impact Sentiment?

Markets surged Monday after the U.S. and China agreed to reduce mutual tariffs to 10%, down from 20%. Although duties related to fentanyl imports remain, the broader move signals easing trade tensions. Treasury Secretary Scott Bessent indicated more talks are coming, fueling optimism for a comprehensive trade agreement. Boeing rose 1.5% premarket on reports that China lifted its ban on U.S. aircraft deliveries, offering a commercial and geopolitical boost.

Why Did UnitedHealth Tank?

consumer price index rose 2.3% year over year in April after the company suspended its 2025 guidance, citing unexpectedly high medical costs. The insurer also announced CEO Andrew Witty would step down immediately for personal reasons, with Stephen Hemsley stepping in as interim chief. The news spooked investors, contributing heavily to the Dow’s premarket weakness.

Can Coinbase’s Index Entry Fuel More Gains?

Coinbase rallied 9.2% on confirmation it will join the S&P 500, replacing Discover Financial. The inclusion boosts its profile and could trigger institutional buying. The crypto trading platform has gained traction with traders this year on growing mainstream acceptance of digital assets.

Sea Limited Impresses Despite Revenue Miss

Shares of Sea Limited jumped 14.1% after it posted stronger-than-expected first-quarter adjusted EBITDA of $946.5 million, crushing the $710.9 million consensus. Revenue came in lighter at $4.84 billion versus a $4.91 billion forecast, but cost control and profitability lifted investor confidence.

Other Movers to Watch

Rigetti Computing dropped 11.4% on disappointing revenue of $1.5 million, missing forecasts. Hertz fell 9% after reporting a larger-than-expected Q1 loss. Under Armour rose 2.2% on upbeat guidance, while Simon Property Group dipped 2% despite solid revenue. Valero gained 1% on a Goldman Sachs upgrade, and Calumet rose 2.2% following a bullish initiation from Bank of America.

What’s Next for the Market?

With inflation easing and tariff risks receding, equities have room to extend gains. Still, sector-specific risks and earnings surprises are influencing sentiment. Investors will closely watch upcoming Fed communications and follow-through from trade talks with China for the next directional cues. For now, the tone remains cautiously constructive.

More Information in our Economic Calendar.