US stocks mostly rise but UnitedHealth weighs on Dow
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Traders working on the floor of the New York Stock Exchange, in New York City, on May 13.
PHOTO: REUTERS
NEW YORK - Wall Street stocks mostly rose May 13 after data showed US inflation easing in April, extending the market’s positive momentum on the improving outlook for trade relations with major partners.
The consumer price index eased to 2.3 per cent in April from a year ago, a tick below the 2.4 per cent figure recorded in March.
Some analysts cautioned that it was still too early to see the implications of US President Donald Trump’s tariff policies, some of which have been rolled back or suspended.
The tech-rich Nasdaq Composite Index led major indices, jumping 1.6 per cent to 19,010.08
The broad-based S&P 500 gained 0.7 per cent to 5,886.65, while the Dow Jones Industrial Average fell 0.6 per cent to 42,140.43 after weakness in UnitedHealth Group stocks.
Markets continued to cheer the US-China announcement on May 12 of a de-escalation of trade tensions. The two countries agreed to much lower levies for 90 days while they work to hash out an agreement.
“It seems as if the euphoria that was ignited yesterday or over the weekend has continued into today at least for the S&P 500 and the Nasdaq,” said Mr Sam Stovall, of CFRA Research.
The benign US inflation data also furthers the odds the Federal Reserve will cut interest rates twice in 2025, Mr Stovall said.
Among individual companies, UnitedHealth Group sank 17.8 per cent after announcing that Mr Andrew Witty was stepping down as chief executive officer for personal reasons, to be replaced by chair Stephen Hemsley.
The company also suspended its 2025 outlook, citing higher-than-expected costs.
Hertz plunged 16.9 per cent after reporting weaker-than-expected results, including a quarterly loss of US$443 million (S$576 million). AFP
