Wall Street Dips: UnitedHealth Declines Amid DOJ Fraud Inquiry
Wall Street faced declines as excitement from a U.S.-China tariff truce faded. UnitedHealth stock tumbled following a DOJ fraud probe report, while Cisco Systems saw gains after raising its forecasts. Falling oil prices impacted the energy sector amidst expectations of a U.S.-Iran nuclear deal affecting sanctions.
On Thursday, Wall Street indices took a hit as the initial boost from the U.S.-China tariff truce waned, leading to declines across major indexes. UnitedHealth Group's shares saw a significant drop of 16% following news of a potential fraud investigation by the Department of Justice, though the company claimed no formal notification had been received.
Meanwhile, Walmart faced pressures with expected price hikes due to tariff costs, despite exceeding sales forecasts. The energy sector also struggled as oil prices declined by about 3% on speculation of easing sanctions tied to an anticipated U.S.-Iran nuclear agreement.
Elsewhere, Cisco Systems experienced a 2.9% rise after revising its fiscal year projections upward. Despite some gains, the tech-heavy Nasdaq saw a retreat with major stocks like Nvidia and Tesla pulling back. Federal Reserve Chairman Jerome Powell highlighted ongoing considerations regarding labor and inflation policies amid a relatively stable inflation environment.
(With inputs from agencies.)
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