UnitedHealth (UNH) stock posts largest Dow 30 sell-off since 1998

UnitedHealth Group (NYSE: UNH), a bellwether of the Dow 30, is experiencing one of the steepest sell-offs in modern stock market history. Over the past month, UNH shares have plunged more than 55%—a rare event for any blue-chip stock. In fact, this sharp downturn represents the first instance since 1998 of a Dow 30 component losing more than half its market value in just one month. Remarkably, the last occurrence involved the very same stock, UnitedHealth, highlighting a dramatic repeat in its market trajectory. Even during the financial crises of 2008 and the COVID-induced market turmoil of 2020, no Dow 30 stock experienced such a steep monthly drop. Reflecting the severity of this sell-off, the daily Relative Strength Index (RSI) for UNH recently plunged to 11, its lowest point since 1998. This indicates an extreme oversold condition, suggesting the stock may be experiencing its most aggressive bearish sentiment in nearly three decades. Why is UNH stock price crashing The sell-off accelerated after a series of damaging developments. On May 13, UnitedHealth suspended its 2025 guidance and announced the immediate resignation of CEO Andrew Witty. The timing coincided with reports of a U.S. Department of Justice criminal probe into potential Medicare fraud tied to the company’s Medicare Advantage operations. Although details remain scarce, the combination of executive turmoil and regulatory scrutiny has deeply rattled investor confidence. As of Thursday’s close, UNH fell to $274.35, down 10.93% on the day. Over the past month, the stock has lost $310.69 per share, marking a total decline of 53.11%. Investors are now watching closely to determine whether this historic collapse signals a long-term breakdown or a potential contrarian buying opportunity. Much will depend on the outcome of the DOJ investigation, upcoming earnings revisions, and how leadership reshapes the company’s outlook in the wake of Witty’s exit. Featured image via Shutterstock Source: https://finbold.com/unitedhealth-unh-stock-posts-largest-dow-30-sell-off-since-1998/