Shares of UnitedHealth Group Inc. (UNH) have made a tremendous impact on the Dow Jones Industrial Average, propelling it into positive territory. Following the health insurer’s impressive second-quarter earnings and full-year outlook, the stock surged 7.2% during afternoon trading. This price gain of $32.07 marks the second-largest increase since UnitedHealth Group went public in October 1984, surpassed only by the record-breaking rally of $33.21 on November 4, 2020.
In terms of points, UnitedHealth’s price gain accounted for about 211 points, outpacing the combined price declines of all other Dow components. Consequently, the Dow rose by 130 points, or 0.4%, while the S&P 500 experienced a slight increase of 0.1%.
Being the highest priced component in the Dow, UnitedHealth has a significant influence on the index’s overall price. As a price-weighted index, percentage gains equivalent to the 7.2% boost seen in UnitedHealth would have a considerably smaller impact on the Dow’s price if observed in lower-priced stocks, such as Walgreens Boots Alliance Inc. (WBA).
In summary, UnitedHealth Group Inc.’s outstanding performance has not only secured its own success but has also propelled the Dow Jones Industrial Average into a positive trajectory.