US: Stocks mostly rise on Tuesday but UnitedHealth weighs on Dow
[NEW YORK] Wall Street stocks mostly rose on Tuesday after data showed US inflation easing in April, extending the market's positive momentum on the improving outlook for trade relations with major partners.
The consumer price index eased to 2.3 per cent in April from a year ago, a tick below the 2.4 per cent figure recorded in March.
Some analysts cautioned that it was still too early to see the implications of US President Donald Trump's tariff policies, some of which have been rolled back or suspended.
The tech-rich Nasdaq Composite Index led major indices, jumping 1.6 per cent to 19,010.08
The broad-based S&P 500 gained 0.7 per cent to 5,886.65, while the Dow Jones Industrial Average fell 0.6 per cent to 42,140.43 after weakness in UnitedHealth Group stocks.
Markets continued to cheer the US-China announcement Monday of a de-escalation of trade tensions. The two countries agreed to much lower levies for 90 days while they work to hash out an agreement.
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'It seems as if the euphoria that was ignited yesterday or over the weekend has continued into today at least for the S&P 500 and the Nasdaq,' said Sam Stovall of CFRA Research.
The benign US inflation data also furthers the odds the Federal Reserve will cut interest rates twice in 2025, Stovall said.
Among individual companies, UnitedHealth Group sank 17.8 per cent after announcing that Andrew Witty was stepping down as CEO for personal reasons, to be replaced by Chair Stephen Hemsley.
The company also suspended its 2025 outlook, citing higher-than-expected costs.
Hertz plunged 16.9 per cent after reporting weaker-than-expected results, including a quarterly loss of US$443 million. AFP
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Straits Times
33 minutes ago
- Straits Times
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For the short term at least, investors are betting few automakers will escape unscathed: BYD, arguably the biggest winner from industry consolidation, has lost US$21.5 billion (S$27.7 billion) in market value since its shares peaked in late May. 'What you're seeing in China is disturbing, because there's a lack of demand and extreme price cutting,' said John Murphy, a senior automotive analyst at Bank of America Corp. Eventually there will be 'massive consolidation' to soak up the excess capacity, Mr Murphy said. For automakers, relentless discounting erodes profit margins, undermines brand value and forces even well-capitalised companies into unsustainable financial positions. Low-priced and low-quality products can seriously damage the international reputation of 'Made-in-China' cars, the People's Daily, an outlet controlled by the Communist Party, said. And that knock would come just as models from BYD to Geely, Zeekr and Xpeng start to collect accolades on the world stage. For consumers, price drops may seem beneficial but they mask deeper risks. Unpredictable pricing discourages long-term trust – already people are complaining on China's social media, wondering why they should buy a car now when it may be cheaper next week – while there's a chance automakers, as they cut costs to stay afloat, may reduce investment in quality, safety and after-sales service. Auto CEOs were told last week they must 'self-regulate' and shouldn't sell cars below cost or offer unreasonable price cuts, according to people familiar with the matter. The issue of zero-mileage cars also came up – where vehicles with no distance on their odometers are sold by dealers into the second-hand market, seen widely as a way for automakers to artificially inflate sales and clear inventory. Chinese automakers have been discounting a lot more aggressively than their foreign counterparts. Mr Murphy said US automakers should just get out. 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Business Times
an hour ago
- Business Times
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an hour ago
- Business Times
China's copper boom under threat as miners test bargaining power
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