S&P 500 hits new high, Dow Jones plunges due to insurance stocks.

At the close of trading on January 27th (early morning of January 28th in Vietnam time), Wall Street saw a highly mixed picture as the S&P 500 reached a new all-time high, the Nasdaq surged thanks to technology stocks, while the Dow Jones fell sharply due to pressure from the healthcare insurance sector. The US dollar also depreciated significantly in the currency market.

Wall Street shows sharp divergence, stocks hit record highs, and the USD falls.

Specifically, the S&P 500 rose 28.37 points, or 0.4%, to 6,978.60, surpassing its all-time high set just weeks earlier and approaching the crucial psychological threshold of 7,000 points. The Nasdaq Composite gained 215.74 points, or 0.9%, to 23,817.10, reflecting strong buying in large-cap technology stocks. Conversely, the DJIA fell 408.99 points, or 0.8%, to 49,003.41. The Russell 2000 index of small-cap companies edged up 0.3%, indicating continued selective buying.

This development shows that although the overall index rose, the market surface was not truly unified, with the number of declining stocks still exceeding the number of rising stocks. Wall Street hit record highs amid sharp stock fluctuations following a series of mixed earnings reports from major companies such as UnitedHealth Group, General Motors, and many other leading corporations. This trading session clearly reflected the trend of capital shifting between stock groups, as investors prioritized companies with clearer profit growth prospects.

The main drivers behind the S&P 500 and Nasdaq's continued gains came from the technology sector. Large-cap stocks like Apple and Microsoft continued to see strong buying ahead of their fourth-quarter earnings releases, as investors anticipated continued positive profits from the "Big Tech" sector driven by demand for AI and cloud computing. In addition, Corning was a bright spot, with its stock soaring 15.6% after announcing a $6 billion deal to supply fiber optic cables and wiring to Meta Platforms for the construction of new data centers. This news allowed Corning to expand its manufacturing facility in Hickory, North Carolina, thereby improving its long-term growth prospects.

Conversely, the Dow Jones came under heavy pressure from the health insurance sector. UnitedHealth Group plunged nearly 20%, becoming the main drag on the blue-chip index. This was due to federal policymakers' proposal for a Medicare Advantage premium increase that was much lower than market expectations. Although UnitedHealth's latest quarterly earnings were slightly better than forecast, its revenue outlook for next year was disappointing. Following the same trend, Humana fell 21.1%, Elevance Health lost 14.3%, and CVS Health dropped 14.2%, demonstrating that policy risks can create significant volatility for traditional defensive stocks.

Some of the losses in the insurance sector were offset by positive earnings results from several other companies. General Motors surged 8.7% and HCA Healthcare rose 7.1% after reporting year-end 2025 earnings that exceeded Wall Street expectations, and announcing multi-billion dollar share buyback programs. UPS also edged up 0.2% thanks to strong earnings and a positive 2026 revenue forecast, despite announcing a job cut of approximately 30,000. Conversely, American Airlines fell by as much as 7% as its earnings fell significantly short of forecasts.

Not only the stock market, but the currency market also witnessed significant volatility. After the Wall Street trading session closed, the US dollar fell more than 1% against the euro, Japanese yen, and Australian dollar. An index measuring the strength of the greenback against a basket of major currencies fell to its lowest level since 2022. The US dollar continued to weaken amid concerns surrounding US debt and President Donald Trump's threatening statements about tariffs on several European countries, increasing "sell-America" ​​sentiment in global markets.

The market is currently in a wait-and-see mode ahead of key events. The Fed is beginning its two-day policy meeting, with expectations of keeping interest rates unchanged to assess the impact of inflation and economic growth. At the same time, upcoming earnings reports from giants like Meta, Microsoft, and Tesla are seen as factors that could shape short-term market trends.

In summary, on January 27th, the S&P 500 and Nasdaq continued their upward momentum, consolidating their positive outlook for 2026, while the Dow Jones faced significant pressure from policy risks in the healthcare insurance sector. This divergent picture suggests the market is entering a "stock selection" phase, where capital is concentrated on companies with clear profit prospects, reflecting investors' cautious yet optimistic stance in the face of numerous economic and policy variables ahead.

Source: https://thoibaonganhang.vn/sp-500-lap-dinh-moi-dow-jones-lao-doc-vi-co-phieu-bao-hiem-177148.html