Dow Jones: Microsoft Tops $4T Market Cap, But UnitedHealth Drop Pressures Index

Dow Dips Mid-Session as UnitedHealth Weighs While Microsoft Lifts on $4T Surge

At Thursday’s mid-session, the Dow Jones Industrial Average is down 12.77 points to 44,448.51, slipping 0.03% as health care laggards pulled the index into the red. The broader S&P 500 rose 0.45%, and the Nasdaq jumped 0.84% behind tech-driven momentum fueled by strong earnings from Microsoft and Meta Platforms.

Are Dow Weaknesses Outweighing Tech-Led Gains?

Health care names pressured the Dow, with UnitedHealth plunging 4.66% to $253.64, marking the steepest drop in the index. Merck lost 2.26%, while Boeing declined 1.38% and Procter & Gamble fell 1.36%. These moves undercut strength in Microsoft (+4.42%) and Caterpillar (+1.07%), making the Dow the session’s laggard despite big-tech enthusiasm.

How Did Microsoft’s Blowout Earnings Impact Sentiment?

Microsoft surged more than 6% intraday after reporting that its Azure cloud unit generated over $75 billion in annual revenue, pushing its market capitalization past $4 trillion.

Meta Platforms spiked 11.5% after issuing a stronger-than-expected Q3 revenue forecast, amplifying tech bullishness. Both stocks helped lift the Nasdaq decisively, though Microsoft’s Dow weighting wasn’t enough to pull the index higher.

What’s Next for Big Tech Earnings and the Dow?

Apple and Amazon are set to report earnings after the bell. Expectations are elevated following Thursday’s tech rally. Amazon gained 1.69% in anticipation, while Apple slipped slightly by 0.12%.

With several Dow components facing pressure, upcoming reports from these Mag-7 names could determine whether the broader market sustains momentum into August.

Are External Factors Supporting or Pressuring the Dow Outlook?

U.S. Treasury Secretary Scott Bessent added a layer of optimism, stating negotiations with China “have the makings of a deal” ahead of an August 1 trade deadline and an August 12 tariff truce expiration. While no timeline was provided, his comments lifted risk appetite, particularly among multinational names.

However, analysts warn the current surge—especially in mega-cap tech—may resemble a “blow-off top.” Calamos Research’s Joseph Cusick cautioned that market reactions remain difficult to justify as valuation multiples stretch.

Can the Dow Rebound into the Close?

Despite strong tech earnings and macro optimism, the Dow faces resistance from sharp declines in health care and industrial leaders.

With rate expectations flat following the Fed’s hold on Wednesday, the index may remain range-bound unless upcoming earnings or trade developments shift the tone.

For now, traders should watch whether strength in Microsoft and Amazon can counterbalance sector-specific drag from health care and staples.

More Information in our Economic Calendar.