Earnings Surge as Health Insurers Weigh Down Market Gains

The S&P 500 and Nasdaq are on the rise, driven by significant earnings reports, despite setbacks in the health insurance sector due to a disappointing Medicare Advantage proposal. Major tech companies prepare to release earnings, while small-cap stocks see significant gains, overshadowing broader market advances.

The S&P 500 and Nasdaq experienced gains on Wednesday, bolstered by major earnings reports, despite health insurers facing declines. A Medicare Advantage payment proposal disappointed investors, affecting market dynamics and leading to UnitedHealth's significant drop.

The Dow was notably impacted by a 19% fall in UnitedHealth following the proposal's announcement, which cast a cloud over its optimistic 2026 profit forecast. Meanwhile, sector peers Humana and CVS also faced declines of 19% and 9.2%, respectively, contributing to the overall decrease in the S&P 500 health index.

Earnings reports continued to play a crucial role, with Boeing and General Motors showing contrasting results. Major airlines faced challenges due to severe weather, impacting forecasts. As earnings season progresses, anticipation builds around tech giants and the Federal Reserve's upcoming policy decisions, underscoring uncertainty in the market.

(With inputs from agencies.)