Benchmark S&P500 Slips as Blue Chips Gain on UnitedHealth; AMAT Drags Tech

S&P 500 Slips from Highs as Tech Weakens but Healthcare Surges

The S&P 500 eased 0.2% Friday after hitting a fresh intraday record, with traders taking some profits following a strong week. The Nasdaq Composite dropped 0.3%, while the Dow Jones Industrial Average outperformed—up 0.3%—thanks to a 14% jump in UnitedHealth that briefly pushed it to a record high.

Healthcare Strength Offsets Tech Weakness—For Now

Healthcare led all sectors, with the group up 1.77% on the day and pacing for its best weekly performance since October 2022. UnitedHealth’s surge was joined by strong gains in Centene, Molina Healthcare, Elevance Health, and Moderna. The move came as buyers returned to oversold names, helping the iShares U.S. Healthcare Providers ETF notch its best session in over a year.

On the flip side, technology stocks weighed on the S&P 500. The sector slipped 0.81%, led lower by semiconductor weakness after Applied Materials warned on guidance, sending its shares down nearly 14%. KLA and Lam Research also tumbled more than 7%, while Nvidia dropped 2%. Cisco, Micron, and Broadcom were also under pressure.

Economic Data Sends Mixed Signals to the Federal Reserve

Economic releases offered a split picture. July retail sales rose 0.5%—in line with expectations—pointing to resilient consumer spending. However, the University of Michigan’s consumer sentiment index fell to 58.6 from 61.7, with inflation expectations ticking higher. That combination leaves traders focused on the Federal Reserve, with September rate cut bets still alive but contingent on upcoming commentary from Chair Jerome Powell.

Other Sectors See Selective Strength

Energy rose 0.52%, supported by firmer crude prices, while real estate gained 0.81% and communication services climbed 1.22%. Consumer staples, materials, and utilities posted modest changes, while financials fell 0.96%—weighed down by Wells Fargo and weakness across the banking group.

Key Levels and Market Outlook for the E-mini S&P 500

On the daily chart, the E-mini S&P 500 is consolidating just below the 6502.50 high, with immediate support marked at 6453.25. A deeper pullback could see buyers step in near 6371.00, while the 50-day SMA at 6269.8 remains a key medium-term floor. On the upside, a breakout over 6502.50 could target new highs, but momentum may be tested by soft breadth—Friday saw just eight S&P 500 names hit fresh 52-week highs.

Bottom line—for now, healthcare leadership is keeping the index near record territory, but narrow participation and tech sector weakness mean traders should watch support zones closely ahead of Fed commentary.

More Information in our Economic Calendar.