Elevance Health led the slide, with traders scrutinizing the company’s latest medical-cost ratio. While the insurer reported improvements in this critical metric, the market response remained cold, reflecting a broader cooling toward the sector. UnitedHealth Group and Humana also retreated, surrendering significant gains accumulated over the past several weeks of market trading.

Abbott Laboratories faced additional pressure after announcing plans to spin off its nutritional unit. Investors greeted the news with skepticism, casting doubt on the future of the division responsible for Pedialyte and Similac. The move marks a pivot for the device maker, ending a turbulent era for the brand characterized by both steady revenue growth and persistent regulatory scrutiny.