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Indexes down: Dow 0.31%, S&P 500 0.33%, Nasdaq 0.64%

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Cisco ( CSCO ) gains after raising FY forecasts

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UnitedHealth ( UNH ) down on report it faces criminal probe

(Updates after market open)

By Shashwat Chauhan and Pranav Kashyap

May 15 (Reuters) -

Wall Street dipped on Thursday as elation from the

U.S.-China tariff truce faded for major indexes, while

UnitedHealth's ( UNH ) stock took a pummeling after a report of a DOJ

fraud inquiry into the insurer.

UnitedHealth Group ( UNH ) plunged 16% to its lowest level

since April 2020.

The Wall Street Journal reported that the U.S. Department of

Justice was conducting a criminal investigation into the company

for possible Medicare fraud. However, the health insurer said it

had not been informed of a criminal probe by federal

prosecutors.

Walmart ( WMT ) will have to start raising prices later this

month due to the high cost of tariffs, executives said, even as

the retail giant's U.S. comparable sales surpassed expectations

in the first quarter. Its shares were down 4.8%

At 09:42 a.m., the Dow Jones Industrial Average fell

128.62 points, or 0.31%, to 41,922.44, the S&P 500 lost

19.46 points, or 0.33%, to 5,873.03, and the Nasdaq Composite

lost 123.27 points, or 0.64%, to 19,023.53.

Speaking on the day, U.S. Federal Reserve chair Jerome

Powell said central bank officials felt they needed to

reconsider the key elements around jobs as well as inflation in

their current monetary policy approach.

U.S.

retail sales

growth slowed in April, while a Labor Department report

showed the producer price index for final demand fell 0.5% for

the same month, compared to an expectation of a 0.2% rise.

On an annual basis, producer prices came in at 2.4%

versus an estimate of 2.5%.

"There will be a hump and pick up in prices, but until

we see how big that is and how lasting that is, the Fed should

be able to remain patient," said Jan Nevruzi, U.S. rates

strategist at TD Securities.

The data dump follows a relatively tame consumer price

reading earlier this week, indicating that consumer prices

rebounded moderately last month.

In results-driven moves, Cisco Systems ( CSCO ) gained 2.9%

after the networking-equipment maker raised its annual forecasts

and named Mark Patterson its new CFO.

Only four out of the 11 S&P 500 sectors were trading in the

green.

The energy sector fell the most, as oil prices

slid around 3% on expectations of a U.S.-Iran nuclear deal that

could result in sanctions easing.

Stocks have been see-sawing this week as equities jumped

on Monday and Tuesday following a temporary ceasefire in the

U.S.-China tariff war. The gains were enough to drag the S&P

out of the red for the year - its first positive showing

since late February - although it is still about 4% shy of its

record highs.

Many megacap and growth stocks pulled back, with Nvidia ( NVDA )

slipping 1.2%, while Tesla shed 2.8%.

Foot Locker ( FL ), soared 83.6% after rival Dick's Sporting

Goods agreed to buy the footwear retailer for $2.4

billion.

Advancing issues outnumbered decliners by a 1.01-to-1 ratio

on the NYSE, while declining issues outnumbered advancers by a

1.28-to-1 ratio on the Nasdaq.

The S&P 500 posted four new 52-week highs and three new

lows, while the Nasdaq Composite recorded 17 new highs and 51

new lows.