The U.S. stock market opened lower, with UnitedHealth’s shares plunging due to a Department of Justice probe. Other stocks, including Block, Rivian, and Akamai, saw major movements, while Bitcoin remained steady.
U.S. Stock Market Opens Lower Amidst Weak Sentiment
The U.S. stock market started the trading session on a weak note, putting it on track for a losing week. Investors reacted negatively to fresh concerns over healthcare giant UnitedHealth ($UNH), which saw a sharp decline following reports of a Department of Justice (DOJ) probe into its Medicare billing practices.
At 9:35 a.m. ET, major indices reflected the cautious sentiment:
- S&P 500 eased 0.19%, falling 11.9 points to 6,105.62.
- Dow Jones Industrial Average dropped 0.65%, or 286.04 points, to 43,890.61.
- Nasdaq Composite edged down 0.032%, or 6.31 points, to 19,955.95.
- The benchmark 10-year Treasury yield dipped to 4.493%.
UnitedHealth Plunges Over 7% Amid DOJ Investigation
UnitedHealth Group ($UNH) shares dropped 7.25%, erasing $36.42 per share, after a Wall Street Journal reportrevealed that the DOJ is conducting a civil fraud investigation into the company’s Medicare billing practices.
The probe focuses on whether UnitedHealth recorded diagnoses in a manner that triggered extra payments to its Medicare Advantage plans, including physician groups owned by the insurer. The report has spooked investors, leading to a sell-off in the healthcare sector.
Stocks to Watch: Major Market Movers
Aside from UnitedHealth, several other stocks experienced significant price swings on Friday:
📉 Block Inc. ($SQ) – Down 10.5%
The payment technology company reported weaker-than-expected earnings for Q4, missing analysts’ forecasts. Investors reacted negatively, causing a double-digit decline in its stock price.
📉 Rivian ($RIVN) – Down 5.29%
Despite beating earnings expectations, the electric vehicle (EV) maker projected lower vehicle deliveries in 2025compared to 2024. This guidance disappointed investors, leading to a sharp decline in its stock price.
📈 Celsius Holdings ($CELH) – Up 23%
The energy drink company surged over 23% after announcing its $1.8 billion acquisition of Alani Nutrition, a prominent health and wellness drinks brand. The deal, which includes cash and stock, is expected to expand Celsius’ market reach.
📉 Akamai Technologies ($AKAM) – Down 11.5%
The cybersecurity firm reported a disappointing revenue outlook for 2025, which failed to meet analysts’ expectations. This led to a sharp sell-off in its shares.
Bitcoin and Crypto Industry News
Meanwhile, the crypto market remained stable, with Bitcoin trading at $98,761.73, up 0.42%.
In a major development, Coinbase ($COIN) announced that the Securities and Exchange Commission (SEC) has agreed to drop its enforcement case against the crypto exchange. CEO Brian Armstrong called it a “huge victory” for both Coinbase and the crypto industry, as the resolution comes with no financial penalties.
Market Outlook: What’s Next?
With the week coming to a close, investors will be closely watching:
- Updates on the DOJ probe into UnitedHealth and its potential ripple effects in the healthcare sector.
- Federal Reserve policy developments regarding interest rates and inflation data.
- Market reactions to earnings reports from major corporations in the upcoming sessions.
Final Thoughts
The stock market’s struggles this week highlight the impact of regulatory concerns, corporate earnings, and economic conditions. While UnitedHealth’s DOJ probe has rattled healthcare investors, growth stocks like Celsius Holdings have provided a rare bright spot.
With Bitcoin maintaining stability and regulatory winds shifting in the crypto industry, market participants will be watching closely for new opportunities and potential risks in the coming weeks.
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