Futures, which were trading 320 points higher, reversed course to fall as much as 470 points within a few minutes. However, the S&P 500 and Nasdaq futures are still holding on to their respective gains.
Just as the Dow futures reversed course, US President Donald Trump targeted Fed Chair Jerome Powell on his social media platform “Truth Social.”
“The ECB is expected to cut interest rates for the 7th time, and yet, “Too Late” Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete “mess!” Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!” Trump wrote.
However, this may be one of the reason but not the only one as to why the Dow futures saw a sharp fall.
The fall came due to the Dow Jones’ major constituent UnitedHealth, reporting results and cutting its guidance for the full year.
UnitedHealth has cut its financial year 2026 Earnings Per Share (EPS) guidance to $26 to $26.5 per share from its earlier guidance of $29.5 – $30 per share earlier.
UnitedHealth has been rocked by turmoil since the December killing of a top executive. Still in mourning, the company faced a torrent of vitriol on social media from people fed up with the health-care system. It’s trying to repair its image and persuade the public that it’s part of the solution.
Shares of UnitedHealth are down 20% in pre-market trading. The stock is not a part of the S&P 500 or the Nasdaq.
UnitedHealth commands the highest weightage on the 30-stock Dow Jones index, currently at 9%. The sharp fall has seen an impact on the Dow futures, which are now down 400 points.
