Stock Market Today, Jan. 27: Dow Sinks As UnitedHealth Plummets, Tech Stocks Boost S&P 500 and Nasdaq

The S&P 500 (SNPINDEX:^GSPC) rose 0.41% to 6,978.58, notching another record close; the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 0.91% to 23,817.10 on tech and AI strength, while the Dow Jones Industrial Average (DJINDICES:^DJI) fell 0.83% to 49,003.42 on healthcare weakness.

Market movers

UnitedHealth Group sank roughly 20% after an earnings-related disappointment, dragging healthcare and the Dow. On the upside, chipmaker Micron Technology and Amazon advanced as investors rotated into AI-linked semiconductors and rewarded Amazon’s decision to exit its Fresh and Go grocery stores.

What this means for investors

While the Dow’s bad day stands out in contrast to the S&P 500 and Nasdaq’s gains, investors shouldn’t misinterpret this as some sort of signal from the market. UnitedHealth is in the 30-stock Dow Jones Industrial Average, which is price weighted. Since UnitedHealth traded at $350 before today’s haircut, it was one of the index’s largest holdings. Due to this size, much of the (if not all of) the Dow’s drop ties to UNH today, due to its own 20% decline.

Meanwhile, technology and semiconductor stocks helped push the other two indexes higher as the market waits for results from the Magnificent Seven. Micron announced plans for a $24 billion memory plant in Singapore, reinforcing the seeming unrelenting trend toward higher AI-focused capex spending. Elsewhere, Amazon announced it would be transitioning its Fresh and Go grocery stores into Whole Foods, seemingly going “all-in” on expanding grocery delivery and the Whole Foods brand -- a move that was met positively by the market.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Micron Technology. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.