Dow Jones and Nasdaq 100: Buffett Boosts Health Stocks as Tech Drags Indexes Pre-Market

Dow Futures Rise as Buffett Boosts UnitedHealth; Nasdaq Lags on Tech Weakness

U.S. stock futures traded mixed Friday morning, with blue chips gaining on renewed confidence in health care, while tech underperformed following a downbeat outlook from key chipmakers.

The Dow Jones Industrial Average futures climbed 304 points, or 0.7%, lifted by a sharp rebound in UnitedHealth shares. Meanwhile, S&P 500 futures were flat, and Nasdaq-100 futures dipped 0.2% as chip stocks weighed.

Traders processed a week of conflicting inflation data, which initially supported rate cut hopes before hotter-than-expected wholesale prices unsettled expectations. Despite that, the S&P 500 closed at a new record on Thursday, showing resilience as markets priced in a still-likely policy easing from the Federal Reserve next month.

How Did Buffett’s Bet on UnitedHealth Move Markets?

UnitedHealth surged 12% premarket after filings revealed Warren Buffett’s Berkshire Hathaway bought over five million shares in the second quarter, worth roughly $1.6 billion. The stock had lost nearly 50% this year on regulatory pressure, internal turmoil, and an earnings forecast cut. But Buffett’s involvement – alongside new stakes by Scion Asset Management and Appaloosa – signaled a potential value opportunity.

The insurer’s rally was the key contributor to the Dow’s futures gain. Berkshire’s portfolio updates also revealed new positions in Nucor, DR Horton, and Lamar Advertising, while trimming Apple and Bank of America. Shares of Nucor gained 8% postmarket, with Lennar and DR Horton up around 3% each.

Can the Federal Reserve Still Cut Rates After Mixed Inflation Signals?

The week began with encouraging CPI data that cooled rate hike fears, pushing major indexes up over 1% by Thursday’s close. However, Thursday’s surprise jump in PPI raised doubts. Fundstrat’s Tom Lee dismissed the concern, calling the wholesale inflation data a “transitory blip,” reaffirming expectations for a September rate cut.

Investors now turn to fresh economic data Friday, including import prices, retail sales, and consumer sentiment, for clarity on Fed policy direction.

Which Stocks Are Dragging on the Nasdaq?

Semiconductor stocks weighed on tech. Applied Materials dropped 11% after guiding below consensus for the current quarter, despite beating on revenue and EPS. Intel climbed nearly 4% postmarket on reports that the Trump administration may acquire a stake to bolster domestic chip production.

Elsewhere, Sandisk sank 10% on margin compression, while Gambling.com fell 11% after cutting EBITDA guidance. Hims & Hers Health dropped over 5% on reports of an FTC probe into its cancellation practices.

Market Outlook: Will Rate Cut Hopes Sustain the Rally?

Equities remain supported by expectations of a Fed pivot, despite temporary data-driven pullbacks. Traders should monitor Friday’s retail sales and consumer sentiment data for signals on consumer strength. While earnings concerns linger in tech, rotation into value names like UnitedHealth may continue if rate cuts materialize.

More Information in our Economic Calendar.