Support
Dow Jones slides after sharp decline in UnitedHealth shares
The Dow Jones Industrial Average retreated at the market close, diverging from the S&P 500 and Nasdaq 100, both of which advanced. The decline in the blue-chip index was primarily driven by a significant sell-off in UnitedHealth Group, whose shares plummeted by nearly 20%. Concurrently, investor sentiment was tempered by the looming threat of a US government shutdown as Congress struggles to reach a consensus on the Department of Homeland Security (DHS) budget.
UnitedHealth shares fell 19.61% after fourth-quarter revenue missed analyst forecasts and the Trump administration proposed a near-flat growth rate in the reimbursement rate for Medicare Advantage plans in 2027.
A partial government shutdown may commence this coming Saturday if the Senate fails to resolve a budgetary impasse regarding DHS funding and other key federal institutions.
Shares in Micron Technology surged 5.44% to a record closing high of $410.24, bolstered by the announcement of a $24 billion investment in Singapore to support its global expansion and AI-driven growth.
UnitedHealth’s shares decline following Trump’s flat-rate Medicare proposal and revenue miss
UnitedHealth Group reported fourth-quarter 2025 earnings per share (EPS) of $2.11, precisely matching analyst expectations. However, the company failed to meet revenue forecasts, reporting $113.20 billion against a projected $113.73 billion. While this represents a 12.3% year-on-year increase in revenue, EPS suffered a sharp 69% decline compared to the previous year. This earnings bifurcation triggered significant selling pressure, resulting in a 19.61% depreciation of the stock, which closed at $282.70.
Market sentiment was further dampened by a proposal from the Trump administration to maintain near-flat reimbursement rates for Medicare Advantage insurers. According to CNBC’s information, the proposal suggests a net average payment increase of just 0.09% for 2027—a stark contrast to the 4% to 6% increase anticipated by Wall Street analysts. Given that Medicare Advantage is a critical private-sector program for seniors and the disabled, a flat-rate policy could considerably squeeze margins. If implemented, this move threatens to further erode UnitedHealth’s profitability, which has already been under pressure throughout the past fiscal year.
The sharp decline in UnitedHealth—a heavily weighted component of the price-weighted index—dragged the Dow Jones Industrial Average down by 0.83% to 49,003 points. Conversely, the S&P 500 and Nasdaq 100, more influenced by technology gains, finished the session in positive territory.
Figure 1. UnitedHealth stock prices (2024–2026). Source: Data from the NYSE; Figure obtained from TradingView.
Probability of a US shutdown increases amid rising political and social instability
The US government faces a possible partial shutdown starting this Saturday, as Congress remains deadlocked over the Department of Homeland Security (DHS) budget. Political tensions reached a flashpoint following a fatal shooting involving immigration agents in Minneapolis. This incident has prompted Democratic lawmakers to demand more stringent oversight and comprehensive reforms to agency funding, complicating the passage of the broader appropriations package.
In response to the growing fiscal and social instability, gold futures (GCG26) accelerated their ascent. The precious metal surpassed the $5,100 per ounce threshold, marking an intraday appreciation of approximately 1.5%. Both institutional investors and central banks are increasingly pivoting toward gold as a hedge against heightening domestic in the US and global uncertainty.
Micron reaches new historical highs on reaction of multi-billion-dollar manufacturing expansion
Defying the broader pressure on the Dow, Micron Technology reached a new all-time high, climbing 5.44% to close at $410.24 per share. This rally follows the company's announcement of a $24 billion investment in Singapore, spanning a ten-year horizon.
The investment is targeted at constructing an advanced wafer fabrication facility to meet the burgeoning global demand for memory and storage solutions driven by artificial intelligence (AI). Investors have reacted favourably to this strategic expansion, viewing it as a clear signal of Micron's leadership in the AI infrastructure supply chain and its commitment to long-term capacity growth.
