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Key Takeaways
- The Dow Jones Industrial Average rose nearly 1,000 points by midday, as major indexes began to recover from tariff-induced declines.
- Shares of health insurance operators surged after the federal government said it would pay a higher rate to Medicare insurers than previously estimated.
- Chip stocks also rose following a rout sparked by President Donald Trump's sweeping tariffs and China's retaliatory measures.
The Dow Jones Industrial Average jumped nearly 1,000 points at midday on Tuesday as the major indices recovered from tariff-induced losses. The Dow, S&P 500, and Nasdaq were all up close to 2%.
Shares of health insurance operators surged after the federal government said it would pay a higher rate to Medicare insurers than previously estimated. Humana (HUM), UnitedHealth Group (UNH), and Aetna owner CVS Health (CVS) were among the top gainers in the S&P 500.
Also among the top S&P gainers were cruise operators Carnival Corp. (CCL) and Norwegian Cruise Line Holdings (NCLH), whose shares had declined sharply in recent days amid worries about tariffs and rising recession risks.
Chip stocks also rose following a rout sparked by President Donald Trump’s sweeping tariffs and China’s retaliatory measures. Nvidia (NVDA), Broadcom, Intel (INTC), Micron Technology, Lam Research (LRCX), Applied Materials and Micron Technology all saw their shares rise.
RPM International shares fell after the parent company of DayGlo, Rust-Oleum and Rust-Oleum missed its quarterly targets. The CEO attributed this to bad weather.
Lululemon Athletica shares (LULU) have continued to decline since CEO Calvin McDonald said that “consumers are spending less because of increased concerns about inflation, and the economy”, during the retailer’s quarterly earnings call in March. The stock has lost a quarter of its value since Lululemon reported their fourth-quarter results. This is not helped by President Trump’s tariffs on Vietnam which produces many of Lululemon’s products.
Enphase Energy shares fell when the microinverter based solar and batteries systems provider announced that a new battery would be available to customers in Luxembourg. The stock’s value has dropped by more than half in the past year.
Oil and gold futures rose. The yield of the 10-year Treasury note increased. The U.S. Dollar fell against the yen, euro, and pound. Prices for major cryptocurrencies were mixed. Bitcoin’s price was slightly lower at just over $77,000.
