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US STOCKS-Wall St set for lower open as trade truce rally fades, UnitedHealth falls
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US STOCKS-Wall St set for lower open as trade truce rally fades, UnitedHealth falls
May 26, 2025 8:38 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Futures down: Dow 0.27%, S&P 500 0.31%, Nasdaq 0.46%

*

Cisco ( CSCO ) gains after raising FY forecasts

*

UnitedHealth ( UNH ) down after report firm facing criminal probe

(Updates before markets open)

By Shashwat Chauhan and Pranav Kashyap

May 15 (Reuters) - Wall Street's main indexes were on

track to open lower on Thursday as euphoria from the U.S.-China

tariff truce waned, while UnitedHealth's ( UNH ) stock was pressured

following a report that the DoJ was investigating the health

insurer for fraud.

UnitedHealth Group ( UNH ) dropped 7.3% after the Wall

Street Journal reported that the U.S. Department of Justice was

conducting a criminal investigation into the company for

possible Medicare fraud. The 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 trading flat.

At 08:46 a.m. ET, Dow E-minis were down 115 points,

or 0.27%, S&P 500 E-minis were down 18.5 points, or

0.31%, and Nasdaq 100 E-minis were down 97.5 points, or

0.46%.

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.

In economic data, 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%.

"This is not enough to shift the scales for the Fed on

its own," said Jan Nevruzi, U.S. rates strategist at TD

Securities.

"Policy from the government's side has been changing

rapidly, so on the back of that they're willing to give these

economic figures (time) to develop."

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.

The week has proved to be a roller-coaster ride for stocks,

as equities surged on Monday and Tuesday after the United States

and China agreed to a 90-day pause on their heated tariff

dispute.

These initial advances pushed the S&P into positive

territory for the year, a first since late February, although

the index still hovers about 4% below its all-time highs.

However, the rally hit a roadblock in the last session as

markets sought fresh catalysts. The S&P 500 eked out marginal

gains, while the Dow finished in the red.

Many megacap and growth stocks - which had enjoyed strong

gains earlier in the week - pulled back. Nvidia's ( NVDA )

shares fell 0.8% and Tesla lost 1.8%.

Other major movers included Foot Locker ( FL ), which soared

83.2% after rival Dick's Sporting Goods agreed to buy

the footwear retailer for $2.4 billion.

Top oil producers Chevron ( CVX ) and Exxon Mobil ( XOM )

dropped about 1% each as oil prices slid around 3% on

expectations of a U.S.-Iran nuclear deal that could result in

sanctions easing.

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