How One Stock Shaved More Than 400 Points Off the Dow on Tuesday

Core Insights - UnitedHealth Group's stock decline significantly impacted the Dow Jones Industrial Average, contributing to a 422-point drop, which accounted for the entire 409-point decline of the index on that day [1][1][1] Company Performance - UnitedHealth's shares fell nearly 20%, losing $69 each, after disappointing earnings were reported [1][1] - The company faced a dual setback as Medicare administrators announced minimal increases in payments to private Medicare Advantage plans, and UnitedHealth forecasted a decline in total revenue for the year due to operational cutbacks [1][1] Market Impact - The Dow Jones Industrial Average fell by 0.8%, while the S&P 500 and Nasdaq saw gains of 0.4% and 0.9%, respectively, indicating a divergence in performance among major indexes [1][1] - UnitedHealth Group, being one of the most expensive stocks in the Dow, had a significant influence on the index's performance due to its price-weighted methodology [1][1][1] Related Stocks - Other influential stocks in the Dow, such as Goldman Sachs, Home Depot, and American Express, also experienced declines, but UnitedHealth's drop was the primary driver of the index's negative performance [1][1]