U.S. stock market closed with mixed results: Cisco's stock rose as its financial forecast was revised upward, while UnitedHealth's stock plunged due to a judicial investigation.

Taiwan • Business • 05/15 21:23
U.S. stock market closed with mixed results: Cisco's stock rose as its financial forecast was revised upward, while UnitedHealth's stock plunged due to a judicial investigation.

On May 15, 2025, the U.S. stock market closed with mixed performance. The Dow Jones Industrial Average rose over 270 points due to Cisco's upward revision of its full-year forecast, while the S&P 500 Index increased for the fourth consecutive day. The Nasdaq Index edged down due to declines in tech stocks such as Amazon and Meta. Cisco's stock price jumped more than 5% on strong AI demand, while UnitedHealth tumbled 11% after reports of a criminal investigation by the U.S. Department of Justice, hitting a five-year low, making it the market's focal point.

Key Updates

05/16 09:54

U.S. stocks have risen for four straight days: Market sentiment has improved, but the Federal Reserve warns about the risks of supply shocks.

U.S. stocks continued to rise this week, with the S&P 500 index closing higher for four consecutive days. The Dow Jones index rose over 270 points on May 15, due to the easing of U.S.-China tariffs and improving economic data, which boosted market confidence. Federal Reserve Chairman Powell warned that supply shocks could become more frequent and persistent, highlighting that the market still faces risks. Issues such as supply chain bottlenecks, policy uncertainty, and weak consumer spending remain, urging investors to remain vigilant.

05/16 02:58

In April, the US Producer Price Index (PPI) saw its largest decline in five years, putting pressure on technology stocks, leading to mixed results in the US stock market; the Taiwan stock market closed at 21,730 points, as foreign investors have been net buyers for ten consecutive days.

The U.S. Producer Price Index (PPI) fell by 0.5% in April, marking the largest monthly drop in five years, mainly due to a decrease in service prices, indicating a reduction in inflationary pressures. Following the release of this data, the U.S. stock market showed mixed performance, as the Dow Jones and S&P 500 rose, while the Nasdaq and Philadelphia Semiconductor Index fell. On the 15th, Taiwan's weighted index closed down by 52.62 points to 21,730.25, as foreign investors net bought for the tenth consecutive day, with a single-day net purchase of NT$7.534 billion, accumulating over NT$200 billion in net purchases over ten days.

05/16 02:58

U.S. stock futures fluctuate in early morning trading: Dow drops slightly by 17 points, Nasdaq and S&P both retreat.

On May 16, 2025 (local time in Taipei), in early trading, U.S. stock futures were volatile. The Dow Jones Industrial Average futures stood at 42,368 points, down 17 points or 0.04%; the S&P 500 futures were at 5,925.25 points, down 8 points or 0.13%; and the Nasdaq 100 futures were at 21,361.75 points, down 38.5 points or 0.18%. This was in contrast to the rise seen at 08:31, when futures for the three major indices saw a slight uptick. After a mixed performance in the previous trading day, investor sentiment was cautious.

05/16 01:24

JPMorgan CEO Jamie Dimon, in Paris, warns about recession risks, and the uncertainty surrounding US-China trade negotiations is impacting US stock performance.

On May 15, 2025, JPMorgan Chase's CEO, Jamie Dimon, warned at the Global Markets Conference in Paris that despite the easing of US-China tariff tensions, global economic uncertainties and recession risks still exist. Progress in the US-China trade negotiations has been limited, and market sentiment is cautious. On that day, the performance of US stocks was mixed, with the Dow Jones Industrial Average rising 271 points, the S&P 500 closing higher for the fourth consecutive day, while the Nasdaq and the Philadelphia Semiconductor Index experienced slight declines.

05/15 22:55

US stocks are mixed: Employment data is steady, IMF cuts global growth forecast; US-South Korea forex talks lead to Korean won fluctuations

On May 16, 2025, the major indices of the U.S. stock market had mixed performances, with the Dow Jones Industrial Average rising by 0.65% and the S&P 500 Index by 0.41%, while the Nasdaq Index fell by 0.18%. The U.S. non-farm employment report for April showed an increase of 177,000 jobs, with the unemployment rate remaining at 4.2%. The IMF downgraded the 2025 global economic growth forecast to 2.8%, citing U.S. tariff policies as the reason. The U.S.-South Korea foreign exchange policy talks led to fluctuations in the Korean won, and the appreciation of the New Taiwan dollar attracted attention, though the Taiwan-U.S. tariff negotiations did not address exchange rate issues.

05/15 21:23

U.S. stock market closed with mixed results: Cisco's stock rose as its financial forecast was revised upward, while UnitedHealth's stock plunged due to a judicial investigation.

On May 15, 2025, the U.S. stock market closed with mixed performance. The Dow Jones Industrial Average rose over 270 points due to Cisco's upward revision of its full-year forecast, while the S&P 500 Index increased for the fourth consecutive day. The Nasdaq Index edged down due to declines in tech stocks such as Amazon and Meta. Cisco's stock price jumped more than 5% on strong AI demand, while UnitedHealth tumbled 11% after reports of a criminal investigation by the U.S. Department of Justice, hitting a five-year low, making it the market's focal point.

05/15 08:26

Trump Announces "Tariff Freedom Day": S&P 500 Strongly Rebounds, Retail Investors Cause Significant Market Fluctuations

On April 9, 2025, President Trump of the United States announced "Tariff Liberation Day," significantly lowering tariffs on Chinese goods and reached an agreement with China to suspend the trade war for 90 days. This policy shift caused market fluctuations, with the S&P 500 index initially dropping and then rising, resulting in an "artificial bull market." The CNN Fear and Greed Index surged to 70, indicating that market sentiment had shifted into the greed zone. This article examines the impact of the policy shift on the stock market and how retail investors dominated the market rebound.

05/15 02:25

US stocks experience slight fluctuations: AI deal boosts tech stocks, the S&P 500 rises for six consecutive days, Treasury yields break through 4.5%

On May 14, 2025, the major U.S. stock indices were mixed. The S&P 500 index rose for the sixth consecutive day, boosted by the AI cooperation agreement between the U.S. and Saudi Arabia, as technology stocks performed strongly. The Nasdaq index also rose, while the Dow Jones index slightly declined. The yield on the 10-year U.S. Treasury note rose to 4.53%, indicating increased pressure in the bond market. Investors are focusing on the forthcoming economic data and remarks from Federal Reserve Chairman Powell to evaluate future policy directions.

05/14 18:56

U.S. stocks opened higher due to trade optimism: the pause in U.S.-China tariffs and easing inflation are boosting the three major indexes.

On May 14, 2025, the U.S. stock market continued its upward trend from earlier this week due to positive news such as the U.S.-China tariff suspension, cooling inflation data, and Trump's visit to the Middle East. The Dow Jones Industrial Average rose by 9.7 points, the S&P 500 rose by 10.2 points, and the Nasdaq rose by 64.6 points. Technology stocks performed strongly, particularly AI-related companies, leading to a positive shift in market sentiment.

05/14 18:27

European stock markets decline: Optimism regarding US-China trade relations diminishes, policy easing does not boost investor confidence

On May 14, 2025, major European stock markets ended lower as optimism among investors about easing US-China trade tensions waned. The London FTSE 100 index dropped 0.21%, the Frankfurt DAX index dropped 0.47%, and the Paris CAC 40 index fell 0.47% as well. Even though the Chinese Ministry of Commerce announced a temporary lift on export controls for 45 US entities, market reactions showed that this short-term policy relief did not boost investor confidence.

Cisco Raises Financial Forecast, Stock Soars Intraday

Networking equipment giant Cisco (NASDAQ: CSCO) announced its fiscal 2025 third-quarter earnings after the market closed on Wednesday, with revenue reaching $14.1 billion, an 11% year-over-year increase, meeting market expectations. Adjusted earnings per share were $0.96, better than analysts' estimate of $0.92. The company also projected revenue for the current quarter ending in July to be between $14.5 billion and $14.7 billion and raised its full-year revenue forecast to $56.5 billion to $56.7 billion, higher than the previous estimate of $56 billion to $56.5 billion.

Cisco noted strong demand for AI infrastructure, with AI orders from large cloud customers exceeding $600 million last quarter alone, and surpassing $1 billion since the beginning of 2025. CEO Chuck Robbins stated that AI-driven transformation is crucial for businesses, and customer spending has not shown a significant slowdown.

Additionally, Cisco announced a partnership with Saudi Arabian AI company Humain to provide network products, computing power, and cybersecurity services. Robbins revealed that Humain's total investment in the AI field could reach hundreds of billions of dollars, potentially rivaling major U.S. network operators.

Encouraged by the positive news, Cisco's stock rose over 5% intraday on Thursday, closing at $62.92, up about 9.1% year-to-date, with a 29.9% increase over the past 12 months.

UnitedHealth Faces Criminal Probe, Stock Plummets

In stark contrast to Cisco, UnitedHealth Group (NYSE: UNH) saw its stock plummet 11% on Thursday, reaching a five-year low. According to The Wall Street Journal, the U.S. Department of Justice is conducting a criminal probe into the company, involving potential Medicare fraud. The investigation reportedly began last summer.

This news continues UnitedHealth's recent stock decline. Since mid-April, the company's stock has fallen over 50%. Previously, UnitedHealth had revised its full-year profit forecast downward and withdrew its financial guidance earlier this week, while also announcing the sudden departure of its CEO, raising concerns about its operational stability.

UnitedHealth stated it has not yet received formal notification from the Department of Justice, but the market reacted strongly, and the stock's plunge also pressured the Dow Jones Industrial Average. As a component of the Dow, UnitedHealth was once one of the most influential stocks in the index, but its market value and weight have significantly declined.

Divergent Performance of Major Indices

On Thursday, the three major U.S. stock indices had mixed results. The Dow Jones Industrial Average rose 271.69 points, or 0.65%, to close at 42,322.75 points, mainly boosted by Cisco's rise. The S&P 500 Index increased by 24.35 points, or 0.41%, closing at 5,916.93 points, marking the fourth consecutive day of gains. The Nasdaq Composite Index fell 34.49 points, or 0.18%, to close at 19,112.32 points, weighed down by tech stocks like Amazon and Meta.

Among the 11 sectors of the S&P 500, 8 closed higher, with utilities rising 2.1% and consumer goods up 2%. Technology and healthcare sectors performed relatively weakly.

Economic Data and Market Sentiment

Economic data released on Thursday showed that the U.S. Producer Price Index (PPI) unexpectedly fell by 0.5% in April, the largest drop in five years, indicating that businesses may be absorbing some tariff costs. In terms of retail sales, they rose to $724.1 billion in April, but sales excluding autos increased by only 0.1%, below expectations.

Additionally, initial jobless claims remained at 229,000, slightly above market estimates, suggesting resilience in the labor market. The yield on the 10-year U.S. Treasury note fell from 4.53% the previous day to 4.44%, reflecting cautious market sentiment about the economic outlook.

In terms of market sentiment, with the U.S. and China reaching a 90-day tariff suspension agreement, investor concerns about trade tensions have slightly eased. The Chicago Board Options Exchange Volatility Index (VIX) fell below 20 earlier this week, indicating a rise in market risk appetite.

Other Key Stocks

  • Walmart (WMT) shares fell 0.5%, despite first-quarter profits exceeding expectations, as revenue missed targets and the company warned of price increases due to tariff pressures.
  • Amazon (AMZN) dropped 2.4%, weakening alongside tech stocks like Meta and Tesla, weighing down the Nasdaq index.
  • Alibaba (BABA) fell 7% due to earnings falling short of expectations, reflecting weak consumer spending in China and increased competition.
  • NetEase (NTES) and Gaotu (GOTU) rose 13% and 17%, respectively, due to better-than-expected earnings.

References

People Also Ask...

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Could Cisco's collaboration with Saudi AI company Humain further increase the demand for AI infrastructure?

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Cisco's stock price surged. How will this affect future investments?

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What potential impact could the partnership between Cisco and Humain, a Saudi Arabian AI company, have on the global AI market?