Record S&P 500 Surge Amid Mixed Earnings and Federal Reserve Anticipation

The S&P 500 hit a record amid mixed earnings reports, a major healthcare selloff, and anticipation of megacap tech earnings. UnitedHealth led losses due to a proposed Medicare rate hike, while UPS and GM reported positive forecasts. Investors awaited the Federal Reserve's policy signals at its upcoming meeting.

The S&P 500 touched a record high with mixed earnings reports and significant losses in health insurers tempering optimism. This was notably influenced by UnitedHealth's 19% drop following a proposed Medicare rate increase. The Medicare news compounded issues for the insurer's revenue outlook for 2026, impacting fellow insurers like Humana and CVS.

However, there were positive signs in earnings announcements from United Parcel Service and General Motors. UPS projected higher revenue for 2026, causing a 3% rise in their stock. Additionally, GM's shares jumped 9% after reporting higher fourth-quarter core profits. As megacap tech earnings loom, companies like Microsoft, Nvidia, and Amazon lifted the tech sector.

Despite a decline in consumer confidence, marked by its lowest point since 2014, the broader market showed resilience. The Federal Reserve's imminent policy meeting held investor interest, as stakeholders anticipated whether interest rates would remain unchanged. The Nasdaq reached nearly a three-month high amidst these developments.