A decline of 178 points was recorded by the DOW Jones, pulled lower due to lowered profit forecasts issued by leading U.S. healthcare companies.
While stock markets are being boosted by the easing of China-U.S. tariff tensions, the DOW Jones continues to trail behind. On Tuesday, May 13, the S&P 500 was reported at 5,893 points—an increase of 50 points or 0.85%—marking a move into positive territory for 2025. The tech-heavy Nasdaq was noted at 21,222.80, having risen by 354.652 points or 1.7%.
At the same moment, the DOW Jones was recorded at 42,250.67 points, reflecting a drop of 159.43 points or 0.38%. This occurred despite favorable progress in U.S.-China trade relations, which had a positive impact on technology stocks. Notably, Nvidia’s shares were increased by 5.79%, Amazon saw a rise of 1.64%, and IBM experienced a gain of 1.87%.
Healthcare Stocks Hit Hard by Trump’s Latest Action
However, the advances seen in Nvidia and Amazon were overshadowed by a 0.28% decline in Microsoft’s stock, along with substantial drops in healthcare-related companies. For example, a 3.04% decrease was reported for Johnson & Johnson, while Merck’s shares were reduced by 3.18%.
Moreover, a staggering loss of 16.34% was experienced by UnitedHealth following the sudden departure of its long-serving CEO, Andrew Witty. The company’s annual pricing outlook was also withdrawn, with the decision attributed to escalating medical expenses.
Healthcare stocks have been experiencing a downward trend after an executive order was signed by U.S. President Donald Trump to reduce the cost of prescription medications. Pharmaceutical companies were instructed by the administration to lower drug prices to match those paid by patients in other nations. For firms that fail to adhere, unspecified but intensifying actions have been threatened by the White House to enforce compliance.
It has been estimated by analysts that a reduction in drug prices across the U.S. could lead to an 8% decrease in projected net income for the global pharmaceutical sector by 2028. Nevertheless, although this action would impact the earnings of healthcare companies, potential relief could be provided to Americans burdened by escalating medical expenses.
