CNBC Business News Update - Market Close: S&P 500, Nasdaq Rally To 2-1/2 Month Highs, UnitedHealth Breaks Losing Streak, Tax Bill Fails To Clear Procedural Hurdle 5-16-2025

Episode Date: May 16, 2025

The latest in business, financial, and market news and how it impacts your money, reported by CNBC's Peter Schacknow

I'm Peter Schack, CNBC. If investors are still worried about the impact of tariffs on the stock market, they did not show it today. The market wrapped a strong week with a Friday rally. The Dow jumped 332 points to close at 42,655. The S&P 500 rose 0.7% or 41 points. The Nasdaq added 99 points, or about half a percent. That doesn't mean that caution should be thrown out the window, according to Goldman Sachs

partner Alexandra Wilson-Elizondo. With a tariff rate that's 5X what it was, could we retest the lows? Yeah, we can. But there's a lot of scope in the near term for sentiment to change with financial conditions. We've seen a tremendous amount of retail buying. Institutions still haven't necessarily put all their money back to work. So there is a lot of momentum in our minds in the short term. But in the far term, you know, there's a lot that remains to be seen,

a lot of execution risks. Among stocks on the move today, Corona beer maker Constellation Brands rose nearly 3% after Berkshire Hathaway's quarterly filing revealed that Warren Buffett's firm doubled its stake in the spirits-maker. UnitedHealthcare gained more than 6 percent, breaking an eight-session losing streak. It had fallen more than 10 percent Thursday on reports of a Justice Department investigation involving alleged Medicare advantage fraud. President Trump's sweeping tax bill failed to clear a procedural vote in the House Budget

Committee. Some Republicans are demanding deeper spending cuts. Peter Schacht now, CNBC.