The Dow dropped 500 points on Friday afternoon as the Justice Department’s investigation into UnitedHealth weighed on the market. Additionally, a weaker-than-expected U.S. housing sales report added to the pressure, with high prices and mortgage rates contributing to the slowdown. According to the National Association of Realtors, sales of previously owned homes fell 4.9% in January compared to the previous month, much worse than the anticipated 2.6% decline.
In the afternoon, the Dow Jones Industrial Average slid 496 points, or 1.1%. The tech-heavy Nasdaq and S&P 500 dropped 1.1% and 0.9%, respectively.
Notable market movers on Friday included UnitedHealth, Alibaba, Celsius, Block, Dropbox, and others.
UnitedHealth Group (UNH) is under fire over its Medicare billing practices. The Wall Street Journal reported Friday that the U.S. Department of Justice (DOJ) has launched a civil fraud investigation into how the company records diagnoses that lead to extra payments for its Medicare Advantage plans.
UnitedHealth stock fell almost 9% following the news.
The Securities and Exchange Commission (SEC) plans to drop its enforcement case against Coinbase, marking a significant shift in cryptocurrency regulation.
Following the announcement, Coinbase’s (COIN) shares rose in the morning but declined in the afternoon. The SEC had accused Coinbase of operating an unregistered securities exchange and offering unregistered securities.
—Bruce Gil contributed to the article.
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