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Payments firm Block falls as Q4 profit misses estimates

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UnitedHealth ( UNH ) drops after report of DOJ investigation

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Indexes down: Dow 0.77%, S&P 500 0.49%, Nasdaq 0.63%

(Updates with afternoon trading levels)

By Shashwat Chauhan and Sukriti Gupta

Feb 21 (Reuters) - Wall Street's main indexes were set

for weekly declines on Friday, as fresh data painted a weak

picture for the American economy, while UnitedHealth ( UNH ) dropped

after a report that the U.S. Justice Department is investigating

the healthcare conglomerate.

Data published by S&P Global showed U.S. business

activity nearly stalled in February amid mounting fears over

tariffs on imports and deep cuts in federal government spending.

"Companies report widespread concerns about the impact

of federal government policies, ranging from spending cuts to

tariffs and geopolitical developments," said Chris Williamson,

chief business economist at S&P Global Market Intelligence.

Another survey by the University of Michigan showed U.S.

consumer sentiment

dropped more than expected in February to a 15-month low

and inflation expectations rocketed.

"There are signs that the economy might be slowing, and

combine that with the fears of the unknown of the tariffs, it's

leading to somewhat of a pullback in the market," said Peter

Cardillo, chief market economist at Spartan Capital Securities.

The Dow Jones Transport Average - often noted as

gauge to measure the strength of the economy - slumped 2.4% and

was on track for its worst single-day drop this year.

UnitedHealth ( UNH ) slid 9% after the Wall Street Journal

reported that the U.S. Justice Department has launched an

investigation into the company's Medicare billing practices in

recent months.

Shares of other health insurers were also hit, with CVS

Health ( CVS ) down 2.3% and Humana losing 4.6%.

All three main indexes are set for weekly declines despite

the S&P 500 hitting record highs twice earlier this week.

The blue-chip Dow was on pace for its worst weekly

slide since early January.

Retail giant Walmart's ( WMT ) dour forecast on Thursday,

along with jitters around President Donald Trump's tariff

threats and uncertainty over the Federal Reserve's interest rate

outlook, have pinned equities lower this week.

Earlier this week, Trump said he will announce fresh tariffs

over the next month or sooner, adding lumber and forest products

to previously announced plans to impose duties on imported cars,

semiconductors and pharmaceuticals.

The Personal Consumption Expenditures (PCE) reading, the

Fed's preferred gauge for inflation, would be on the radar next

week, along with AI-darling Nvidia's ( NVDA ) quarterly

earnings.

At 11:40 a.m. ET, the Dow Jones Industrial Average

fell 338.56 points, or 0.77%, to 43,838.09, the S&P 500

dropped 29.98 points, or 0.49%, to 6,087.54 and the

Nasdaq Composite lost 125.47 points, or 0.63%, to

19,836.89.

Eight of the S&P 500's 11 sectors traded lower, with

industrials leading declines with a 1.2% fall.

Block tumbled 15% after the payment firm's

fourth-quarter profit fell short of estimates.

Akamai Technologies ( AKAM ) dropped 16.2% as the

cybersecurity company forecast annual 2025 revenue below

estimates.

Declining issues outnumbered advancers by a 1.57-to-1 ratio

on the NYSE and by a 1.79-to-1 ratio on the Nasdaq.

The S&P 500 posted 15 new 52-week highs and seven new

lows, while the Nasdaq Composite recorded 63 new highs and 75

new lows.