The Dow's Thursday tumble, explained
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The Dow Jones Industrial Average fell 527 points on Thursday, despite the fact that 20 of its 30 components actually rose in price. The culprit: UnitedHealth Group, whose $131 fall was singlehandedly responsible for an 805-point decline.
Why it matters: A single highly-priced stock, if it falls far enough, can now create a greater point drop in the Dow than the 508-point plunge that triggered panicked headlines around the world in 1987.
Follow the money: S&P Dow Jones Indices confirmed to Axios that the fall on Thursday represents the largest point impact for the DJIA on record.
Between the lines: The Dow is a weird beast, being an average and not an index. As such, a stock like UnitedHealth, which trades for more than $400 per share, has a significantly higher weighting than much more valuable companies like Apple or Nvidia.
The bottom line: If you care about what the stock market did Thursday, look to the S&P 500 (+0.1%) — and not to the Dow (-1.3%).
