The One Stock Behind the Dow’s Steep Drop Thursday

Dow Jones Industrial Average fell more than 500 points on Thursday, or more than 1.3%, and most of the faults of a stock bore: United Health Group (UNH).

The stocks of the United Health earned more than 22% after the health insurer earned more than 22% after the health insurer cut the entire year’s earnings for the health insurer, citing high-appropriate costs. Meanwhile, more than two-thirds out of 30 shares in Blue-Chip Dow, one of the most quoted measures of the US stock market performance, was closed on Thursday. S&P 500 was 0.13% at the same time and NASDAQ composite-generally more unstable than doves due to its pre-centers of development shares-was marginally lower after sales.

On Thursday, Dow had a clear reflection of the unique functioning of the dramatic underperformance index. Dow is value-loving, meaning that shares with highest share prices have the most impact on the performance of the index. On the other hand, S&P 500 and NasDaq are captivisation-vested index that are more affected by companies with highest market values, not the highest share prices.

The United Health Group, with a closing price of $ 585.04 yesterday, had the highest price in Dow and thus the most impressive component. Goldman Sachs (GS), which closed at $ 499.05 yesterday, is the only dove stock with a share price within $ 100 of the United Health. (With the disadvantage of the United Health on Thursday, Goldman can finish the week as Dow’s biggest stock.)

Apple (AAPL), with the closing price of $ 194.27 tomorrow, is a fraction of the effect of the United Health within the Dow. But the iPhone manufacturer has 15 billion shares, and thus approximately $ 3 trillion has a market capitalization. About 900 million shares in the United Health on Wednesday placed their market cap close to $ 535 billion, which means that the S&P 500 of Apple Stock is more than 5 times the weight in 500.

To ensure this, United Health, 14th largest company of S&P 500 is growing in Thursday-still has huge amounts of effects within S&P 500.

The selection committee that chooses shares for Dow is the cognizance of its specialty. According to S&P Global, its price-charge functioning, “In the last few years, high-priced shares have not been included in Dow.” Investors often speculate that companies with high share prices divided their stock into part to increase the possibility of joining the dow. In recent years, both Amazn and NVDIA (NVDA) have been added to Dow in a relatively low order after dividing their shares, trading more than $ 1,000 per share.

Dow is not the only index of susceptible to dangerous imbalance. Earlier this year, a luxurious seven-apple, Microsoft (MSFT), NVDia, Amazon, Alphabet (Gog), Meta (Meta), and Tesla (TSLA) -S and P500 for about one-third of a concentration, a climax that sets an extreme levels of some investors.

Update, April 17, 2025: This article is updated to reflect stock and index changes in close to the market.