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Markets traded mostly higher today, with the S&P 500, Nasdaq, and small-cap Russell 2000 all notching higher for the third time in the past four sessions. Only the blue-chip Dow stayed in the red all trading day, with a massive -17.8% drop in one of its top components, UnitedHealthcare (UNH - Free Report). The Dow closed down -269 points, -0.64%, while the S&P 500, Nasdaq and Russell 2000 gained +0.72%, +1,61% and +0.49%, respectively.

UnitedHealthcare has shed -47% of its stock value in just the past month. The company sank following its Q1 earnings report mid-April, with slightly lower earnings and sales joining lowered guidance for the full year. Just today, CEO Andrew Witty has stepped down from his post, effective immediately, and that lowered guidance for 2025 was taken off the table completely.

The good news for UNH stock is that Chairman Stephen Hemsley — widely credited with turning around the health insurance giant during his tenure between 2006 and 2017 — will be returning to the job in the interim. Recall also that UnitedHealthcare’s CEO prior to Witty, Brian Thompson, was shot and killed on the streets on New York City in early December of last year. UNH currently carries a Zacks Rank #4 (Sell), compared to a Zacks Rank #2 (Buy) at competitors Cigna (CI - Free Report) and Centene (CNC - Free Report).

The Nasdaq, meanwhile, was up largely on the surge in NVIDIA (NVDA - Free Report) shares today, growing +5.6% in the Tuesday session. Off April 4th lows — at which time stocks in almost every industry were tanking — NVIDIA shares have grown a whopping +38%. The visual chip innovator and leading AI-infrastructure stock has enjoyed a resurgence of companies deploying funds into AI projects in what’s becoming known as an “arms race” of artificial intelligence.

What to Expect from the Stock Market Wednesday
 

Speaking of AI plays, Cisco Systems (CSCO - Free Report) is scheduled to report its fiscal Q3 numbers tomorrow after the closing bell. The technology conglomerate is expected to produce +3.4% earnings growth year over year, and +10.7% on yearly sales. Its enterprise-level AI technology and full-quarter contribution from its cloud-based Splunk application management segment are expected to demonstrate strength. Cisco has a long history of posting reliable, modest earnings beats.

Otherwise, we’ll be pretty quiet for Hump Day. The sister report to today’s CPI release this morning — the Producer Price Index (PPI) for April — comes out Thursday morning, along with Retail Sales and Weekly Jobless Claims. Wednesday brings us a few public appearances from Fed members like Vice Chair Philip Jefferson, Governor Christopher Waller, and San Francisco President Mary Daly. Then again, there’s always news from the White House; currently, President Trump is touring the Middle East.

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