Stock market turbulence ensued as the scrutiny unsettled a leading stock. At the commencement of trading, U.S. stocks experienced a decline, notably impacted by the health insurance behemoth UnitedHealth, following revelations in the Wall Street Journal about an ongoing investigation by the Department of Justice into the company’s Medicare billing methods. The probe, focusing on potential civil fraud, is examining UnitedHealth’s procedures for documenting diagnoses that prompt additional payments to its Medicare Advantage plans, particularly within the physician groups affiliated with the insurer. Consequently, UnitedHealth’s shares plummeted by 7.25%, amounting to $36.42, reaching $466.
By approximately 9:35 a.m. Eastern Time, the broad S&P 500 index had decreased by 0.19%, representing a decline of 11.9 points, settling at 6,105.62. Simultaneously, the Dow Jones Industrial Average witnessed a fall of 0.65%, equivalent to 286.04 points, closing at 43,890.61, while the tech-heavy Nasdaq saw a marginal dip of 0.032%, or 6.31 points, concluding at 19,955.95. The benchmark 10-year yield also experienced a decline to 4.493%.
In other market movements, several stocks garnered attention on Friday:
• Block underperformed analyst predictions in the final quarter of the year, resulting in a decline of approximately 10.5% in the shares of the payments platform.
• Rivian exceeded earnings expectations in the previous quarter but anticipated a decrease in deliveries for the current year compared to 2024, leading to a 5.29% decline in the electric car manufacturer’s shares.
• Celsius Holdings saw its stock surge by over 23% after announcing the acquisition of health and wellness drinks brand Alani Nutrition in a deal valued at $1.8 billion in cash and stock.
• Akamai Technologies witnessed an 11.5% drop following a forecast of 2025 annual revenue below analysts’ estimates.
Regarding cryptocurrency developments, Coinbase, a prominent crypto exchange, disclosed that the Securities and Exchange Commission had agreed to drop its enforcement action against the company, pending approval from the regulator’s commissioners. Coinbase’s co-founder and CEO, Brian Armstrong, affirmed that no fine would be paid, characterizing the resolution of the case as a significant milestone for both Coinbase and the broader crypto industry. Bitcoin’s valuation stood at 0.42% higher, reaching $98,761.73.
Medora Lee, a reporter covering finance, markets, and personal finance at USA TODAY, can be contacted at mjlee@usatoday.com. To receive personal finance tips and business news, subscribe to the free Daily Money newsletter, available every Monday through Friday morning. This article was originally published on USA TODAY and provides insights into the stock market decline, poised for a weekly loss with UnitedHealth’s impact.
