Wall Street's key indicators were set to decline weekly on Friday as new data painted a weak picture of the US economy, but after reports that the Department of Justice is investigating healthcare conglomerates, United Health has fallen.
In the afternoon trading, the Dow Jones industrial average fell 43,472 points to 704 points (1.6%). The S&P 500 dropped by 1.4%, while the Nasdaq lost 1.7%.
All three major indices are set to drop every week despite the S&P 500 hitting record highs twice earlier this week. The Blue Chip Dow has been watching its worst weekly slides at a pace since early January.
Data released by S&P Global showed business activity that had almost stagnated in February amid fears of tariffs over imports and deep cuts in federal spending.
“We are committed to providing a range of services to our customers,” said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.
Another study by the University of Michigan found that consumer sentiment fell more than expected in February, with 15-month lows and inflation expectations skyrocketing.
“There is a sign that the economy may be slowing down and combines it with the unknown fear of tariffs, which has led to a somewhat pullback in the market,” says Peter Cardilo, chief market economist at Spartan Capital Securities. states.
The Dow Jones transport average – often attracting attention as a gauge for measuring the strength of the economy – fell to 2.4% and was on track with the worst day drop this year.
UnitedHealth has since 9% slided Wall Street Journal The Department of Justice reported that in recent months it has begun an investigation into the company's Medicare claims practices.
Shares in other health insurance companies were also HIST, with CVS Health down 2.3% and Humana losing 4.6%.
Stocks have been low this week, along with retail giant Walmart's Dour forecast on Thursday and fears over Trump's tariff threat and uncertainty over the Federal Reserve's outlook.
Earlier this week, Trump said he would announce fresh tariffs before next month, adding wood and forest products to plans that imposed previously announced plans on imported vehicles, semiconductors and medicines.
Reading Personal Consumption Expenses (PCE), a priority gauge for the Fed against inflation, will be on the radar next week, along with AI-Darling Nvidia's quarterly revenue.
The block fell 15% after payment company's fourth quarter profits failed to reach estimates.
Akamai Technologies fell 16.2% as cybersecurity companies projected annual revenues for 2025 below estimates.
