Key Takeaways
- The S&P 500 slid 0.4% on Tuesday, Sept. 17, as stocks faltered ahead of Wednesday’s Federal Reserve’s interest rate announcement.
- Humana shares fell as pharmacy benefit managers faced criticism and analysts raised concerns about some of the insurer’s policies for military veterans.
- Pfizer shares moved higher after the pharma company issued measured but stable guidance for fiscal 2025.
Major U.S. equities indexes faltered as the Federal Reserve kicked off its final two-day policy meeting of 2024.
While the central bank is widely expected to announce a third consecutive interest rate cut on Wednesday afternoon, investors are likely preparing to scrutinize the language in the accompanying statement and the subsequent press conference with Fed Chair Jerome Powell for suggestions about what’s in store for next year.
The S&P 500 slipped 0.4%, while the Nasdaq lost 0.3%. The Dow finished 0.6% lower, extending its losing streak to nine straight negative trading sessions.
Health care stocks remained under pressure following President-elect Donald Trump’s comments about removing the “middleman” in the prescription drug markets. Humana (HUM) shares lost 10.2%, the steepest daily drop of any S&P 500 stock on Tuesday, after Piper Sandler analysts flagged earnings risks related to certain plans that provide coverage to military veterans. CVS Health (CVS) shares sank 5.5%, extending a string of recent losses posted as political sentiment against the pharmacy benefit management (PBM) business gathers steam.
Shares of government technology provider Amentum Holdings (AMTM) tumbled 9.7%. Although the company swung to a fourth-quarter profit from a loss a year ago, Amentum executives said on the company’s earnings call that they expect a winding down of certain government programs to weigh on growth in fiscal 2025.
Broadcom (AVGO) shares sank 3.9%, reversing a small portion of a massive run-up in the stock over the past few sessions as the markets digested the chipmaker’s strong earnings results, artificial intelligence (AI) growth, and collaboration with Apple (AAPL) on an AI server chip. Despite Tuesday’s drop, Broadcom’s market capitalization remains above the $1 trillion threshold, which it pierced for the first time last week.
The top performance in the S&P 500 on Tuesday belonged to shares of Pfizer (PFE), which jumped 4.3% after the pharma and biotech giant provided guidance for fiscal 2025. The company’s full-year profit forecast was essentially in line with analysts’ estimates, and Pfizer anticipates sales of its COVID-19 vaccine and medication to remain consistent with 2024 levels.
Fox Corp. (FOXA) shares added 4.3% following reports that FOX News posted a record of more than 400 million views on YouTube during November, topping all other news platforms. FOX News also holds an advantage over its competitors regarding cable TV ratings and social media engagement. Fox Corp. Class B (FOX) shares were up 4.1%.
Tesla (TSLA) shares built on the previous session’s record high, advancing 3.6% on Tuesday. Mizuho became the latest research firm to boost its view on the electric vehicle (EV) juggernaut, upgrading Tesla stock to “outperform” from “neutral” and more than doubling its price target. Echoing other analysis, Mizuho cited expectations for more relaxed self-driving regulations and other tailwinds for Tesla under the incoming presidential administration.
