U.S. stocks tumbled on Friday, extending their selloff in the wake of dour economic reports and closing the book on a holiday-shortened week fraught with new tariff threats and worries of softening consumer demand.

Market Snapshot

The Dow Jones Industrial Average fell 748.63 points, or 1.69%, to 43,428.02, the S&P 500 lost 104.39 points, or 1.71%, to 6,013.13 and the Nasdaq Composite lost 438.36 points, or 2.20%, to 19,524.01.

Market Movers

UnitedHealth declined 7.2% after The Wall Street Journal reported the Justice Department was investigating the healthcare giant's Medicare billing practices in recent months. The report, which cited people familiar with the matter, said the DOJ probe aims to examine the healthcare company's practices for documenting diagnoses that trigger extra payments to its Medicare Advantage plans. Other healthcare stocks fell: Humana declined 5.7% and CVS Health was down 2.5%.

Wal-Mart fell 2.5%. The stock declined 6.5% on Thursday after the company issued weak guidance for fiscal 2026, citing "uncertainties" in the economy and consumer behavior. The retailer said it expects net sales to increase by 3% to 4% versus analysts' expectations of around 4% growth.

U.S.-listed shares of Alibaba rose 5.7%. The Chinese e-commerce giant closed with a gain of 8.1% on Thursday after quarterly earnings beat Wall Street expectations, and after The Wall Street Journal reported late in the session that GameStop CEO Ryan Cohen in recent months has boosted his stake in Alibaba to $1 billion, or about 7 million shares. The Journal report cited people familiar with the matter.

Rivian Automotive, Inc., the electric-vehicle company, posted fourth-quarter gross profit of $170 million, higher than analysts' estimates of $64 million. Sales were $1.7 billion versus forecasts of $1.5 billion. The stock, however, dropped 4.7% after Rivian said it expects an adjusted loss before interest and taxes of between $1.7 billion and $1.9 billion in 2025, below consensus that called for a loss around $1.69 billion. The company also said it expects to deliver 46,000 to 51,000 vehicles in 2025, with the midpoint of that range of 48,500 below Wall Street projections of about 55,000 vehicles.

Tesla Motors, the largest U.S. EV maker, closed down 4.7% after declining 1.7% on Thursday. Lucid Group Inc fell 7.6%.

Online travel company Booking Holdings reported fourth-quarter earnings and bookings that beat analysts' expectations. Room nights booked rose 13% to 261 million in the period, better than analysts' expectations of 250 million, while gross bookings gained 17%. The stock declined 0.6% after rising earlier in the session.

Celsius Holdings, Inc. jumped 28% after the maker of energy drinks posted fourth-quarter earnings and revenue that topped Wall Street expectations and announced an agreement to buy rival Alani Nu, a growing energy-drink brand fueled by social-media influencers, for $1.8 billion in cash and stock.

Block, Inc., the parent company of Square and Cash App, fell 18% after the fintech company reported fourth-quarter adjusted earnings of 71 cents a share on revenue of $6.03 billion, missing analysts' expectations for earnings of 88 cents on revenue of $6.3 billion. Gross profit in the quarter was $2.31 billion, up 14% from a year earlier. Block said it expects gross profit growth in 2025 to increase 15% to $10.22 billion, below Wall Street estimates of $10.28 billion.

Akamai sank 22% after the cloud computing company said it expects first-quarter adjusted earnings of between $1.54 and $1.59 a share on revenue of $1 billion to $1.02 billion. Analysts had been expecting earnings of $1.65 a share on revenue of $1.05 billion.

Coinbase Global, Inc. fell 8.3%. The crypto exchange said staff at the Securities and Exchange Commission will recommend dismissal of a two-year-old lawsuit that aimed to regulate the company as a stock exchange.

Hims & Hers Health Inc. sank 26% after Novo Nordisk, the Danish drug company, said the Food and Drug Administration determined that a shortage of Wegovy and Ozempic, the company's GLP-1 drugs, has been resolved. Hims & Hers sells compounded semaglutide, a version of the active ingredient in Wegovy and Ozempic.

Five9 rose 1% after the call-center software company posted fourth-quarter earnings of 79 cents a share on revenue of $278.7 million, beating analysts' estimates for profit of 70 cents on revenue of $267.8 million.

Market News

Hims & Hers Plunges as the FDA Says Novo’s Weight Loss Drugs Are Not in Shortage

The U.S. Food and Drug Administration (FDA) on Friday declared that Novo-Nordisk A/S’s popular diabetes/weight loss therapies Ozempic and Wegovy are no longer in shortage, hurting the shares of Hims & Hers Health Inc., which makes compounded versions of those drugs.

According to an FDA database on drug shortages updated on Friday, the supply constraints for all versions of Ozempic and Wegovy have been resolved.

The announcement means that Hims & Hers, which markets compounded versions of Ozempic and Wegovy, will no longer be able to manufacture exact copies of the drugs as they did during the shortage.

UnitedHealth Sends Medicare Insurers Lower After Report on DoJ Probe

Shares of UnitedHealth and its rivals in the Medicare Advantage came under pressure on Friday after The Wall Street Journal reported that the U.S. Justice Department has launched a probe into the company’s billing practices.

However, both Oppenheimer and Mizuho defended the managed care giant, noting the investigation linked to the company’s coding practices is unlikely to result in a significant impact on its bottom line, and they would be buyers on the dip.

“The actual impact may not be significant, as these accusations typically result in a reasonable settlement,” Oppenheimer with a $640 per share target on UNH wrote, adding, “Furthermore, we believe this is an industry concern, as all plans focus on coding practices.”

Mizuho, with a similar rating and a $650 per share target on UNH, argued that “while the investigation is new news, the upcoding practices of MA plans are not news,” an issue Medicare addressed in 2024 through a series of regulatory changes.

“As a result, we do not expect an incremental negative EPS impact as a result of this investigation,” analyst Ann Hynes wrote, adding that her firm would be buyers on both UnitedHealth and Humana on today’s weakness.