Major United States benchmark averages closed with a mixed performance on Thursday (Friday AEST), as Cisco’s upbeat forecast lifted the stock, while UnitedHealth plunged amid news of a criminal investigation.
The Dow climbed 271.7 points, or 0.7%, to finish at 42,322.8. The S&P 500 added 24.4 points, or 0.4%, to close at 5,916.9. In contrast, the tech-heavy Nasdaq Composite slipped 34.5 points, or 0.2%, to settle at 19,112.3.
Cisco Systems led the market higher, climbing 4.9% after the networking equipment giant raised its annual outlook, citing strong demand linked to artificial intelligence developments.
Meanwhile, UnitedHealth Group plunged 10.9% to a five-year low. The Wall Street Journal reported that the U.S. Department of Justice is conducting a criminal investigation into the insurer over potential Medicare fraud.
UnitedHealth responded by saying it had not received any notification from federal prosecutors regarding a criminal probe.
Retail stocks have also suffered. Walmart traded 0.5% lower after the company warned it would begin raising its prices later this month in response to U.S. tariffs. This cautious outlook comes despite first-quarter U.S. comparable sales topping forecasts.
The retailer also refrained from issuing profit guidance for the second quarter, highlighting corporate concerns amid ongoing trade tensions.
Amazon, another retail giant with significant exposure to U.S. tariffs, fell 2.4%, contributing to Nasdaq's underperformance.
Investors have been closely monitoring the impact of U.S. trade policies as countries scramble to negotiate tariff-related deals with President Donald Trump’s administration. While markets have rebounded from the sharp sell-off in April, uncertainty remains as companies grapple with shifting trade dynamics and cost pressures.
On the economic front, April’s U.S. retail sales data showed slow growth, while producer prices fell unexpectedly, following a slightly lower reading of consumer prices earlier in the week.
On the bond markets, yields declined, with the 10-year Treasury yield down 1.7% to 4.894%, and the 2-year yield falling 2.6% to 3.954%.
