On Friday, US stock markets experienced a correction after hitting new records. Investors started to cash out profits following a successful week.
Decline of Indices After Record
The S&P 500 fell by 0.29%, closing at 6,449.80. The Nasdaq Composite dropped by 0.40%, finishing at 21,622.98. The Dow Jones was the only index to show an increase, closing at 44,946.12 after rising by 0.08%, largely due to the performance of UnitedHealth stocks.
UnitedHealth Gains Support from Major Investors
A key moment for the market was the 12% rise in UnitedHealth stocks, marking its best day since March 2020. Warren Buffett's Berkshire Hathaway purchased 5 million shares worth approximately $1.6 billion. This news significantly boosted the stock, with other notable investors like Michael Burry and David Tepper also disclosing new positions in UnitedHealth.
Valuation Issues and Economic Forecasts
According to Bank of America, the S&P 500 is trading at a price-to-book ratio of 5.3, which is higher than the levels seen in March 2000. Investors are concerned about the potential market bubble. Barclays noted that falling rates are not always negative for the financial sector. Warren Buffett trimmed his investments in Bank of America, but analysts believe this will not affect the market.
Financial markets remain under pressure due to speculation and economic volatility, while individual stocks like UnitedHealth continue to influence overall performance.
