The US market experienced a day of contrasts: the S&P 500 reached a new high, the Nasdaq advanced strongly, and the Dow Jones fell, amidst mixed earnings from large companies and volatility in the healthcare sector.
The S&P 500 reached an all-time high at the close of trading on Tuesday, after its fifth consecutive day of gains, in a session marked by mixed earnings from large companies and a sharp decline in the healthcare sector. The index rose 0.4% to 6,978.60 points, surpassing its previous high, although more stocks within the index declined than advanced. The Nasdaq Composite also showed strength, rising 0.91% to 23,817.10 points, while the Dow Jones Industrial Average fell 408.99 points, or 0.8%, to close at 49,003.41 points.
Attention focused on health insurers, primarily UnitedHealth Group, which fell 19.6% despite reporting quarterly profits slightly above expectations. The market reacted negatively to the company's 2026 revenue forecast, which was lower than Wall Street expectations and could be lower than in 2025. Also influencing the market was the decision by the US government, under the Donald Trump administration, to implement only a modest increase in Medicare Advantage payment rates, which put pressure on the entire sector. Humana lost 21.1%, Elevance Health plummeted 14.3%, and CVS Health declined 14.2%.
The poor performance of the healthcare sector was partially offset by gains in other companies. Corning rose 15.6% after announcing an agreement with Meta Platforms for up to $6 billion to supply fiber optics for data center expansion, which will boost the company's production capacity in North Carolina. Meanwhile, General Motors rose 8.7% and hospital operator HCA Healthcare advanced 7.1%. Both companies exceeded profit expectations and approved multi-billion dollar share buyback programs.
Meanwhile, United Parcel Service (UPS) gained 0.2% after reporting better-than-expected earnings and forecasting higher revenue for 2026, in addition to announcing the elimination of 30,000 jobs. Among airlines, American Airlines fell 7% after reporting lower-than-expected profits, and JetBlue declined after revealing larger-than-anticipated quarterly losses. The airline sector also faced massive flight cancellations due to bad weather on the East Coast of the United States.
Attention is focused on the coming days, when major technology companies such as Meta Platforms, Microsoft, and Tesla will release their earnings, followed by Apple on Thursday. These companies, known as part of the "Magnificent Seven," have been key to Wall Street's rally driven by the artificial intelligence business. Microsoft advanced 2.2% and Apple 1.1% on Tuesday. In total, 102 S&P 500 companies will release earnings this week; of the 64 that had already done so by Friday, 79.7% exceeded analysts' projections, according to LSEG data.
On the macroeconomic front, the Federal Reserve began its two-day meeting, with the general expectation that it will keep interest rates unchanged. Inflation remains above the 2% target, limiting the possibility of immediate cuts and keeping attention focused on future central bank decisions. In the bond market, the yield on the 10-year Treasury rose slightly to 4.23%.
U.S. consumer confidence fell in January to its lowest level since 2014, according to a report from the Conference Board, contradicting forecasts of a slight improvement and showing a more cautious outlook despite the strength of the stock market.
In international markets, major indices rose in Europe and Asia. In India, the Sensex rose 0.4% after Prime Minister Narendra Modi announced a free trade agreement with the European Union, a deal involving 2 billion people after nearly two decades of negotiations, against a backdrop of increased tariffs imposed by the United States. Also notable were the gains in South Korea's Kospi index (2.7%) and Hong Kong's Hang Seng index (1.4%).
(With information from Reuters and AP)
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