Stocks Begin Q2 on Sour Note

The Dow Jones Industrial Average fell for a second day, continuing Wall Street’s lackluster start to the quarter, as bond yields increased and traders lowered expectations that the Federal Reserve would cut interest rates in June.

The 30-stock index stumbled 449.08 points, or 1.1%, to 39,117.77.

The S&P 500 fell 59.08 points, or 1.1%, to 5,184.59.

The NASDAQ swooned 254.75 points, or 1.6%, to 16,142.08.

Tesla plunged 6% after publishing disappointing first-quarter deliveries. Tech-related giants Netflix, Nvidia, Alphabet and Microsoft — some of this year’s big winners — were down at least 1%.

Health insurers slid after the Centers for Medicare & Medicaid Services finalized the 2025 rate announcement for Medicare Advantage and prescription drug coverage. In 2025, payments from the government toward these plans are expected to rise 3.7% year over year, unchanged from an earlier proposed rate. Humana lost 9%, while UnitedHealth dropped 5.9% and CVS Health tumbled 6.5%.

February’s core personal consumption expenditures price index released Friday showed a 2.8% annual increase, about even with December and January’s 2.9% rate and still a way to go from the Fed’s 2% inflation target.

Prices for the 10-year Treasury collapsed, hiking yields to 4.38% from Monday’s 4.32%. Treasury prices and yields move in opposite directions.

Oil prices improved $1.09 at $84.80 U.S. a barrel.

Gold prices picked up $33.60 to $2,290.70 U.S. an ounce.