Wall Street futures hold steady after strong rally; UnitedHealth downgrade weighs on Dow

he stability in futures follows a broadly upbeat session on Wall Street. The S&P 500 rose 0.7 percent on Tuesday, turning positive for the year

Stock futures were largely flat on Wednesday as investors looked to build on the week’s solid gains, even as a downgrade of UnitedHealth cast a shadow over the Dow.

Futures linked to the S&P 500 edged up 0.2 percent, while Nasdaq-100 futures rose 0.3 percent, supported by continued strength in tech. Dow Jones Industrial Average futures hovered near the flatline, held back by weakness in healthcare heavyweight UnitedHealth.

Also read: MakeMyTrip sees 250% surge in Turkey, Azerbaijan trip cancellations amid boycott calls

The stability in futures follows a broadly upbeat session on Wall Street. The S&P 500 rose 0.7 percent on Tuesday, turning positive for the year, while the Nasdaq Composite surged 1.6 percent —its fifth straight day in the green. The Dow, however, slipped 0.6 percent, dragged lower by UnitedHealth.

Bank of America downgraded the insurer to neutral from buy after it withdrew full-year guidance for 2025, citing lingering uncertainty over elevated healthcare usage and a desire to give the incoming CEO more time to assess the outlook. Though UnitedHealth still sees EPS growth returning in 2026 and aims to restore Medicare Advantage margins, analysts warn that might come at the cost of slower membership growth.

Meanwhile, market sentiment remains largely positive, buoyed by the easing of U.S.-China trade tensions. A 90-day tariff pause announced earlier this week has helped soothe investor nerves, triggering a broad-based rally led by tech.

Read more: Mukesh Ambani to meet Trump, Qatar emir in Doha, sources say

Blue-chip names also extended winning streaks, with Apple rising for a fourth straight session and Amazon notching its fifth consecutive gain. Even outside tech, names like Goldman Sachs and Disney are in rally mode, with the latter up for six days in a row.

For Europe, it’s been a mixed morning with the regional Stoxx 600 mainly trading lower and hovering just below the flatline in the early afternoon on course to snap a four-session run in the green. Luxury fashion house Burberry surged nearly 15 percent, topping the index after unveiling a bold cost-cutting and turnaround strategy. While the plan lifted investor sentiment, analysts cautioned that the road to recovery may be long. At the other end, French train-maker Alstom plunged 17 percent, despite swinging back to positive free cash flow, highlighting lingering concerns over its financial outlook. Meanwhile, German defence firm Renk drew attention following a spike in orders.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.