Stock Market Today: Stocks higher on China tech rally: UnitedHealth slumps

U.S. equity futures nudged higher in early Friday trading, putting the S&P 500 on track to end the week in positive territory, amid a modest pullback in Treasury bond yields and solid gains for global stocks tied to a rally in China tech.

Updated at 7:29 AM EST

UnitedHealth

UnitedHealth  (UNH)  shares tumbled in early trading following a report that the U.S. Department of Justice has launched a probe into the health insurance giant's Medicare Advantage practices.

The Wall Street Journal said the investigation will center around UnitedHealth's diagnosis recordings that trigger extra Medicare Advantage payments.  

UnitedHealth shares were last marked 7.5% lower in premarket trading to indicate an opening bell price of $463.50 each. 

$UNH -7.65% [The U.S. Justice Department has launched an investigation into UnitedHealth's Medicare billing practices in recent months, according to the WSJ, citing people familiar with the matter.

The new civil fraud investigation is examining UnitedHealth's practices for…— NOTRELOAD AI (@thudderwicks) February 21, 2025

Stock Market Today

Stocks ended lower across the board last night, with the S&P 500 dragged lower by bank and retail stocks following Walmart's  (WMT)  disappointing profit and sales outlook and a pullback in so-called 'momentum trade' stocks tied to renewed tariff and inflation risks.

A grim reading for January housing starts, as well, underscored the impact that pending tariffs on goods from Canada and Mexico are likely to have on the broader economy, helping Treasury yields pare earlier advances despite the linger inflation concerns echoed by hawkish minutes from the Fed's last policy meeting earlier in the week.

Benchmark 10-year Treasury notes slipped under 4.5% in overnight trading, while 2-year notes eased to 4.262%, helping stock futures ride the wave of overseas gains into the final trading day of the week.

Hong Kong listed shares of China-based tech companies closed out their strongest week of gains in five years, and the best single-day advance since October, following Alibaba's BABA better-than-expected fourth quarter earnings and the ongoing bullishness from DeepSeek's late-January emergence. 

Reports also suggest the GameStop GME CEO and billionaire investor Ryan Cohen has taken a $1 billion in Alibaba, a move that could validate the bullish China tech thesis.

"We do not believe Cohen is alone in his bets on Alibaba as it's becoming clearer this could be one of the winners in the China AI Arms Race," said Wedbush analyst Dan Ives. "Clearly the US/China trade tensions are abound but investors like Cohen are looking past this and trying to make bets on Alibaba and the China tech market, a smart move in our view."

Related: Analyst revisits Nvidia stock price target with Q4 earnings in focus

The gains helped the regional MSCI ex-Japan benchmark to a 1.34% advance, taking the benchmark to its highest levels in three months and extending its longest weekly winning streak in two years. 

European stocks were also on the move, with the regional Stoxx 600 benchmark rising 0.38% in early Frankfurt trading heading into Sunday's Federal elections in Germany. 

More Wall Street Analysis:

• Analyst revisits Palantir stock forecast after annual report filing
• Veteran analyst sounds the alarm on Google and Mag 7
• Veteran stock analyst delivers blunt 3-word message on tariffs

Analysts are expecting a solid win for a conservative coalition lead by Christian Democrat Friedrich Merz, with investors likely focused on the rise of the far-right and anti-European AfD party in Sunday's poll.

Heading into the start of the trading day on Wall Street, futures contracts tied to the S&P 500, which is up 1.72% for the month, are priced for a modest 4 point opening bell gain.

Futures linked to the Dow Jones Industrial Average, meanwhile, suggest a 57 point bump while the tech-focused Nasdaq is called 40 points higher. 

Related: Veteran fund manager issues dire S&P 500 warning for 2025