U.S. stock futures showed mixed results on Tuesday morning, with the Dow futures falling by approximately 0.1%. A significant drop in shares of Humana Inc (NYSE:HUM) marked the pre-market trading session, as health insurer stocks reacted to a report concerning Medicare rates proposed by the Trump administration for 2027.
According to a report from The Wall Street Journal, the administration plans to propose rates for Medicare insurers that remain largely unchanged, suggesting a modest increase of around 0.09% for the upcoming year. Following this news, shares of Humana fell sharply by 12.2%, bringing the stock price down to $231.39 in pre-market trading.
Other Stocks Face Declines
Several other companies also experienced declines in pre-market trading. Brand Engagement Network Inc (NASDAQ:BNAI) saw a significant drop of 32.1%, falling to $42.15 after a remarkable 277% increase on the previous day. Last week, the company secured a $2 million deal for an artificial intelligence pilot program at Nelson Mandela University in collaboration with Valio Technologies, a firm based in South Africa.
Shares of Alignment Healthcare Inc (NASDAQ:ALHC) also dropped by 11.8%, reaching $21.00. This decline is part of the broader trend affecting health insurers, driven primarily by the Medicare rate news. Similarly, ProPetro Holding Corp (NYSE:PUMP) fell by 9.9%, with shares priced at $10.02 following the announcement of a public offering of 15 million common shares at a price of $10 per share.
Impact on Major Health Insurers
Other major health insurers also saw their stock prices decline. CVS Health Corp (NYSE:CVS) decreased by 9.7% to $75.73, while UnitedHealth Group Inc (NYSE:UNH) experienced an 8.8% drop to $320.53. These declines are attributed to the same reports regarding Medicare Advantage plans, which indicate a mere 0.09% average payment increase for 2027.
Meanwhile, Sanmina Corp (NASDAQ:SANM) reported a 8% decrease, with shares falling to $168.00. The company’s first-quarter financial results and second-quarter sales projections were below expectations, contributing to the decline. Cerus Corp (NASDAQ:CERS) declined by 7.3% to $2.28, and Elevance Health Inc (NYSE:ELV) saw a reduction of 7.1% to $350.01.
Additionally, Centene Corp (NYSE:CNC) dipped by 4.7%, reaching $44.12. The overall trend indicates a significant impact on health insurance stocks due to the proposed Medicare rates.
Lastly, Nucor Corp (NYSE:NUE) reported a decline of 3.1% to $172.13, following disappointing earnings for the fourth quarter. The mixed results in the pre-market session highlight the volatility in the stock market as investors react to new information regarding government policies and corporate performance.
