The US stock market experienced a mixed month, with the S&P 500 rising 10% and the Dow Jones Industrial Average gaining only 5%. The main reason behind this disparity is UnitedHealth Group, which saw its share price plummet by 18% last week. This drop has reduced the company’s contribution to the Dow from 9.2% to 4.5%, making it more representative of the overall index.
As a result, other companies have seen an increase in their weight within the index. Goldman Sachs, for instance, now comprises 8.7% of the average after its share price rose above $600 per share. In contrast, Nvidia’s significant presence at $3.19 trillion makes up only 1.9% of the Dow.
The recent decline of UnitedHealth Group has also had a ripple effect on the overall market, causing the Dow Jones to fall by 527 points last week. The company’s drop was solely responsible for this decline, as its share price fell by $131, contributing an additional 805-point decline.
This phenomenon highlights why investing in the Dow Jones can be challenging due to the influence of a single highly-priced stock. A significant drop in such a stock can have a substantial impact on the overall market, making it essential to consider this factor when evaluating investment opportunities.
Source: https://www.axios.com/2025/05/13/unh-stock-unitedhealth-ceo-dow-jones