S&P 500 Dips 0.3% After Record Run as Investors 'Buy the Dip'; UnitedHealth Soars 11%

New York – U.S. equity markets experienced a mixed session on Friday, August 15, 2025, as the S&P 500 index saw a slight decline of 0.3% following a streak of record-setting closes. Despite the minor pullback, prominent market strategist Thomas (Tom) Lee of FSInsight.com observed a resilient investor sentiment, stating in a tweet, "Today investors “bought the dip”." This indicates a continued bullish outlook among market participants, eager to capitalize on any market weakness within the prevailing uptrend.

The S&P 500 closed at 6,468.54 on Thursday, marking its third consecutive record close, reflecting a robust rally in recent weeks. However, Friday's trading saw the benchmark index pull back slightly, while the tech-heavy Nasdaq Composite also declined by 0.4%. Conversely, the Dow Jones Industrial Average finished the day 0.1% higher, propelled by significant individual stock movements.

A major catalyst for the Dow's performance was UnitedHealth (UNH), whose shares surged over 11% following the revelation that Warren Buffett's Berkshire Hathaway had acquired a substantial $1.57 billion stake in the healthcare insurer. This move signaled renewed confidence in the sector, despite previous concerns surrounding regulatory scrutiny and rising healthcare costs. Analysts suggest this strategic investment by Berkshire Hathaway could influence institutional flows into healthcare stocks.

The broader market navigated a landscape of mixed economic signals. The Producer Price Index (PPI) for July jumped 0.9%, significantly exceeding forecasts and raising concerns about persistent inflation. This data contributed to elevated Treasury yields, with the 10-year Treasury yield climbing to 4.32%. Despite the hotter-than-expected inflation figures, market expectations for a Federal Reserve interest rate cut in September remained high.

The semiconductor sector faced headwinds on Friday, with stocks like Applied Materials plunging 14% after issuing a disappointing outlook. This pressure was compounded by looming tariffs on imported chips, as indicated by President Donald Trump's recent statements. However, Intel bucked the trend, rising nearly 3% amid reports that the Trump administration is considering taking a stake in the chipmaker to bolster domestic manufacturing. Overall, the day's trading underscored a dynamic market environment where investors remain keen to "buy the dip" and maintain exposure to equities, particularly in sectors demonstrating strong fundamentals or strategic interest.