The latest earnings season has brought significant turbulence to U.S. markets, with several major companies reporting disappointing results. UnitedHealth (UNH, Financial) saw its stock plummet over 23% after the company disclosed lower-than-expected first-quarter revenue and earnings, and revised its 2025 earnings forecast downward. The company's earnings per share (EPS) came in at $7.20, missing the anticipated $7.29, while revenue grew by 9.8% to $109.6 billion, falling short of analysts' $111.5 billion estimate. UnitedHealth now expects its 2025 EPS to range between $26 and $26.5, significantly below previous forecasts.
Alcoa (AA) also reported a disappointing quarter, with first-quarter revenue of $3.37 billion, missing market expectations despite a 29.6% year-over-year increase. The company faces a $90 million loss in the second quarter due to U.S. tariffs on Canadian aluminum imports. Alcoa's stock fell over 7%, and JPMorgan has lowered its price target from $28 to $25.
NVIDIA (NVDA) experienced a sharp decline, with shares dropping over 4% amid a broader market downturn. JPMorgan has revised its 2025 global semiconductor revenue growth forecast to a flat to mid-single-digit increase, citing the impact of tariffs and global trade tensions.
