Dow Jones slips as UnitedHealth drags; Nasdaq, S&P 500 notch record highs amid tech rebound
U.S. Stocks climbed in afternoon trading Thursday, with both the Nasdaq composite and S&P 500 hitting fresh record highs as investors digested corporate earnings and global monetary updates.
The Nasdaq composite rose 0.3% to a session high of 21,107, setting a new record. The tech-heavy index is up 9.3% for the year. The S&P 500 also gained 0.3%, lifting the benchmark toward a record high close. It’s up 32% since its April low and 8.4% year to date.
Meanwhile, the Dow Jones Industrial Average slipped 0.4% as UnitedHealth Group sank 4% following news of a government investigation. Small caps retreated, with the Russell 2000 falling 0.7%.
United Rentals jumped nearly 8% after crafting a new buy point at 826.46 amid a bullish technical pattern. Though quarterly earnings fell 2% to $10.47 a share, revenue climbed 5% to $3.93 billion, prompting the Stamford-based firm to raise its full-year outlook.
Netflix declined almost 1%, marking its fourth drop in five sessions. The streaming giant is now 5% below its 10-week moving average, flashing a sell signal for recent buyers. Tesla skidded up to 9% after reporting a 23% plunge in earnings and declining sales. CEO Elon Musk voiced optimism over the company’s robotaxi and AI efforts, but warned of near-term volatility as federal EV incentives phase out.
Megacap tech remained active. Meta Platforms rose to a seven-session high as investors watched for a possible breakout ahead of earnings next week. Alphabet rallied 3.5%, ServiceNow surged 7%, and L3Harris advanced 3%. Honeywell and O’Reilly Automotive fell more than 2% and 1%, respectively, while IBM dropped 5%.
West Pharmaceutical Services soared more than 21%, hitting a five-month high as healthcare stocks outperformed despite UnitedHealth’s struggles.
Global Signals and Central Bank Decisions
European markets edged higher amid cautious optimism about a potential EU-U.S. trade deal before an Aug. 1 deadline. The Stoxx 600 closed up 0.24%, marking its second day of gains. However, gains were muted in tariff-sensitive sectors like autos, which rose just 0.13%.
The European Central Bank held interest rates steady at 2%, signaling a wait-and-watch approach amid economic uncertainty. Yields on German, French, Italian and Spanish 10-year bonds all rose about 8–9 basis points following the decision.
The 10-year U.S. Treasury yield ticked up to 4.43%. Oil prices rose, with West Texas Intermediate trading around $66.05 a barrel. Among ETFs, the Invesco QQQ Trust added 0.2%, while the SPDR S&P 500 ETF nudged higher after the opening bell.