On Friday, U.S. stocks took a nosedive, driven by discouraging economic updates. Consumer confidence has hit its lowest point since November 2023, while long-term inflation expectations have shot up to levels not seen since 1995. Additionally, the services purchasing managers’ index slipped into contraction, and January’s home sales dropped more than anticipated.
By the close of the trading day, the Dow Jones Industrial Average had tumbled 748 points, a 1.6% decrease. The S&P 500 didn’t fare much better, falling 1.7%, while the Nasdaq Composite took the hardest hit, plummeting 2.2%. Dampening the mood further, UnitedHealth saw its shares plunge nearly 7% following news of a Justice Department investigation.
Among the stocks making waves on Friday were names like Alibaba, Celsius, Block, and Dropbox.
UnitedHealth Group is facing scrutiny over its Medicare billing practices. According to a report by The Wall Street Journal, the U.S. Department of Justice has initiated a civil fraud investigation to look into how the company records diagnoses, which subsequently affect payments for its Medicare Advantage plans.
In a notable development in the cryptocurrency world, the Securities and Exchange Commission is preparing to drop its enforcement case against Coinbase. This marks a pivotal change in the regulatory landscape for cryptocurrencies.
After hearing the news, Coinbase shares initially rose in the morning but saw a downturn by the afternoon. Previously, the SEC had accused Coinbase of running an unregistered securities exchange and dealing in unregistered securities.
Bruce Gil contributed to this article.
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