Why UnitedHealth Group Incorporated (UNH) Surged On Tuesday?

We recently published a list of 10 Stocks Lead Rally Amid Market Bloodbath. In this article, we are going to take a look at where UnitedHealth Group Incorporated (NYSE:UNH) stands against other stocks that lead rally amid market bloodbath.

The stock market took a battering anew on Tuesday, with all major indices registering steep losses as investors continued to digest President Donald Trump’s next tariff deadline that would slap China with a cumulative 104-percent tariff.

The tech-heavy Nasdaq registered the heaviest fall, down by 2.15 percent, followed by the S&P 500’s 1.57 percent decline, and the Dow Jones’ 0.84-percent drop.

Meanwhile, 10 companies—four of which were in the medical sector—bucked an overall market decline, booking modest gains during the session.

In this article, we listed the 10 well-performing names of Tuesday and detailed the reasons behind their gains.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

A senior healthcare professional giving advice to a patient in a clinic.

UnitedHealth Group Incorporated (NYSE:UNH)

UnitedHealth Group saw its share prices surge by 5.41 percent on Tuesday to finish at $28.38 apiece as investors snapped up shares in the company following a promise from the US government that it would bolster Medicare Advantage payments to $25 billion next year.

The figure, a 5.06-percent increase, was more than double the 2.2 percent hike that the government proposed in January. The new figure signaled relief for a sector that was already reeling with steep medical costs.

The Centers for Medicare & Medicaid Services (CMS), which oversees Medicare and Medicaid health insurance programs, said that the rate change primarily takes into account additional data on the increased costs for the insurers, including fourth-quarter payment data.

In other news, the US Senate last week voted to confirm Dr. Mehmet Oz, the celebrity physician nominated by none other than President Donald Trump, to oversee Medicare and Medicaid.

Overall, UNH ranks 6th on our list of stocks that lead rally amid market bloodbath. While we acknowledge the potential of UNH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.