Wall Street snaps 3-day gaining streak as investors book profits; UnitedHealth shares crash 18%

The April producer price index unexpectedly fell 0.5 percent month-on-month, surprising economists who had expected a 0.3 percent increase.

US stocks edged lower on Thursday as investors took some profits off the table following a strong three-day rally, even as easing US-China trade tensions continued to support the broader sentiment.

The S&P 500 slipped 0.4 percent, putting its winning streak at risk, while the Nasdaq Composite lost 0.8 percent. The Dow Jones Industrial Average fell by 120 points, or 0.3 percent, dragged down by declines in Walmart and UnitedHealth.

Walmart dipped nearly 3 percent despite posting better-than-expected earnings, as the retail giant warned it might have to raise prices due to lingering tariffs. Revenue of $165.61 billion was largely in line with expectations.

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UnitedHealth shares slumped more than 18 percent after a Wall Street Journal report said the company is under a Justice Department investigation for possible Medicare fraud. The company responded by saying it had not received any official notification from the DOJ.

In M&A news, Foot Locker surged 83 percent after Dick’s Sporting Goods announced plans to acquire the company for $2.4 billion. Dick’s, which offered $24 per share—a steep premium—slid nearly 15 percent.

The pullback comes after a strong run earlier this week, driven by optimism around improved US-China trade relations and cooling inflation. Tech stocks have been the standout performers: Nvidia and Tesla have each rallied over 14 percent, Meta is up 10 percent, and Amazon and Alphabet have gained more than 6 and 8 percent, respectively. For the week, the Nasdaq is up 5.9 percent, the S&P 500 has climbed 3.8 percent, and the Dow has added 1.5 percent.

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The April producer price index unexpectedly fell 0.5 percent month-on-month, surprising economists who had expected a 0.3 percent increase. Retail sales rose 0.1 percent, matching forecasts, while industrial production edged down more than anticipated.

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