S&P 500 Gains and Losses Today: Centene Updates Guidance, Health Insurance Stocks Decline

Key Takeaways

The S&P 500 increased by 0.5% on Wednesday, July 2, 2025, reaching a record-high close for the second time this week after the U.S. announced a trade agreement with Vietnam.

Coinbase shares rose following the company's announcement of its acquisition of the token-management platform Liquifi.

Health insurer Centene withdrew its full-year guidance, citing enrollment pressure and higher levels of illness. Centene shares declined, and other health insurance stocks also decreased.

Major U.S. equity indexes ended Wednesday with mixed results as President Donald Trump announced a trade deal between the U.S. and Vietnam.

Private payroll data released Wednesday morning indicated an unexpected decline in employment levels in June. This data is the latest indication of a softening labor market, which may influence the Federal Reserve's consideration of interest-rate adjustments. A more comprehensive employment report is expected Thursday morning.

The S&P 500 advanced 0.5%, achieving its first all-time closing high of the third quarter and its second record close of the week. The Nasdaq increased by 0.9%, also reaching a record closing level, while the Dow declined by less than 0.1%.

Centene and Health Insurance Stocks

Centene (CNC) shares decreased by 40%, the largest decline among S&P 500 stocks, after the company withdrew its full-year guidance. The managed-care provider, which focuses on Medicaid and Affordable Care Act coverage, cited a greater-than-expected slowdown in growth in 22 of its 29 marketplaces and higher patient illness compared to previous risk assessments.

Other health insurance stocks also declined: - Molina Healthcare (MOH) shares fell by 22% - Elevance Health (ELV) shares fell by 12% - UnitedHealth (UNH) shares declined by 5.7%

Albemarle and Lithium Prices

Shares of Albemarle (ALB), a major lithium producer, increased by 8.1%, marking the best performance in the S&P 500 and reaching their highest level since a decline in April. Although concerns about oversupply have lowered lithium prices over the past year, prices increased on Wednesday. Albemarle and other producers have responded to the price environment with cost reductions, including workforce and capital expenditure adjustments.

Coinbase Acquisition

Coinbase Global (COIN) announced the acquisition of the token-management platform Liquifi. Liquifi is designed to assist early-stage projects, and Coinbase stated that the acquisition supports its objective of simplifying the process for organizations building on-chain. Coinbase shares rose by 5.7%.

Moderna Vaccine Update

Moderna (MRNA) shares increased by 5.5% after the company's experimental flu vaccine, based on messenger RNA technology, showed positive results in a late-stage clinical trial. The company plans to file for approval of its standalone flu shot later this year and to resubmit its application for a combination flu and COVID-19 vaccine.

Intel Foundry Strategy

Intel (INTC) shares declined by 4.3% following reports that CEO Lip-Bu Tan is considering a change in the company's foundry strategy, which could involve making a newer generation of chips available to external customers. This change would require Intel to move away from certain manufacturing processes in which it has invested, and analysts indicated that the associated write-off could be significant.

Adobe Downgrade

Analysts at Rothschild & Co Redburn downgraded Adobe (ADBE) stock to "sell" from "neutral," citing competition from generative artificial intelligence tools in the content creation software market. For example, AI tools capable of generating images and videos from text prompts present competition for Adobe's products and services. Additionally, competitor Figma filed for an initial public offering after regulatory concerns affected Adobe's acquisition plans. Adobe shares fell by 3.5% on Wednesday.