The S&P 500 and Nasdaq fell by more than one per cent in afternoon trading on Wednesday, with energy among the sectors leading declines on the S&P 500 as oil prices fell sharply.
Reuters reported on Wednesday, that the shares of Chevron were down by 1.1 per cent at $117.72.
The losses put the S&P 500 on track for its biggest daily percentage loss since February 25.
The Dow Jones industrial average was down by 102.16 points, or 0.70 per cent, at 14,559.85. The Standard & Poor’s 500 Index fell by16.46 points, or 1.05 per cent, at 1,553.79. The Nasdaq Composite Index lost 38.64 points, or 1.19 percent, at 3,216.22.
Stocks rose on Tuesday, pushing the S&P 500 within striking distance of its all-time intraday high, as healthcare stocks surged after a government decision raised prospects of higher profits.
The group gained after the government dropped plans to cut payments for private Medicare Advantage insurers and instead said it would raise them by 3.3 per cent.
Humana, which derives about two-thirds of its revenue from Medicare Advantage business, rose seven per cent to $80.11. UnitedHealth Group rose by 6.2 per cent to $62.67, and Cigna Corporation was up by 4.1 per cent to $65.49.
Despite the gains, stocks in the healthcare sector are still seen as cheaper than the overall market. Humana, which has a market cap of about $11.9bn, has a forward price-to-earnings ratio of 9.4, below the S&P 500 P/E average ratio of about 16.5.
