Wall Street was mixed early Tuesday as corporate earnings stream in ahead of a Federal Reserve decision on interest rates this week.
Futures for the S&P 500 gained 0.2% while futures for the Dow Jones Industrial Average fell 0.5%. Nasdaq futures climbed 0.6%.
The Dow is being dragged down partially due to a sharp decline in United Health and other health insurers after the government issued a projected Medicare Advantage rate increase of less than 1% for 2027. UnitedHealth Group and Humana had 16% of their value wiped out before the opening bell. Elevance Health lost 7.9% and CVS tumbled 13%.
UnitedHealthcare is the nation’s largest provider of Medicare Advantage plans, which are privately run versions of the federal government coverage program, mostly for people ages 65 and older. Insurers have struggled to maintain Medicare Advantage profit margins due to funding cuts and rising care use and costs.
UnitedHealth, which reported fourth-quarter profit and revenue that came very close to analyst projections, said it expects its revenue to decline in 2026. Its shares are down more than 40% since April.
American Airlines rose 4% after it issued strong guidance for 2026. The airline fell well short of fourth-quarter profit targets and said it missed out on $325 million in revenue in the period due to the government shutdown.
General Motors easily beat profit targets in its most recent period and said it expects to slash losses related to electric vehicle production in 2026 as it shrinks production. Its shares rose close to 4% in premarket.
Several of Wall Street’s most influential stocks are also set to deliver earnings reports this week. That includes Meta Platforms, Microsoft and Tesla on Wednesday and Apple on Thursday.
The Federal Reserve will announce its stance on interest rates on Wednesday, when it is expected to hold steady. It’s been lowering its main interest rate and has indicated more cuts may be on the way in 2026 to help shore up the job market and give the economy a boost.
Inflation remains stubbornly above the Fed’s 2% target and lower rates could worsen it.
In Europe at midday, Germany's DAX was flat, while the CAC 40 in Paris rose 0.4%. Britain's FTSE 100 picked up 0.5%.
In Asian trading, Tokyo's Nikkei 225 rose 0.9% to 53,333.54.
India's Sensex edged 0.1% lower after Prime Minister Narendra Modi said the country had reached agreement on a free trade deal with the European Union.
The accord, which touches a whopping 2 billion people, was concluded after nearly two decades of negotiations. It's one of the biggest bilateral engagements on commerce. The timing comes as Washington targets both India and the EU with steep import tariffs.
The Kospi in South Korea surged 2.7% to 5,084.85, even after U.S. President Donald Trump said he would raise tariffs on South Korean goods because the country’s national assembly has yet to approve a trade framework announced last year.
South Korea’s presidential office responded after a meeting of top officials that it will convey its commitment to implementing last year’s deal to the U.S.
The presidential office said that South Korea’s Industry Minister Kim Jung-Kwan will travel to the U.S. for talks with Secretary of Commerce Howard Lutnick, while Trade Minister Yeo Han-koo will travel separately to meet with Trade Representative Jamieson Greer. Kim was on a visit to Canada.
Trump said on social media Monday that import taxes would be raised on autos, lumber and pharmaceutical drugs from South Korea with the rate on other goods going from 15% to 25%.
Gains for Korean tech-related shares like Samsung Electronics, which rose 4.9% and chip maker SK Hynix, which soared 8.7%, helped offset losses for automakers. Kia Corp. fell 1.1% and Hyundai Motor Co. lost 0.8%.
Chinese markets were mixed. Hong Kong's Hang Seng advanced 1.3% to 27,106.83 and the Shanghai Composite index added 0.2% to 4,139.90. But the benchmark for the smaller market in Shenzhen dropped 0.1%.
Taiwan's Taiex was up 0.8%.
In other trading early Tuesday, the price of gold was little changed at $5,084 per ounce. On Monday, it rallied 2.1% and briefly topped $5,100 per ounce for the first time. Silver lost 3.8% 10 $111.08.
Prices for precious metals have been soaring as investors look for safer places to park their money amid threats of tariffs, still-high inflation, political strife and mountains of debt for governments worldwide.
The dollar fell to 153.33 yen from 154.20 yen, while the euro ticked up to $1.1932 from $1.1881.
U.S. benchmark crude oil was unchanged at $60.63 per barrel. Brent crude, the international standard, was just 3 cents lower at $64.74 per barrel.