US stock market: Health care, tech, and defense shine

While tariffs are making headlines, there's strength elsewhere in the U.S. stock market as health care, defense, and some tech stocks are standing out in an otherwise bumpy trading environment.

Healthcare stocks surge on medicare news

Healthcare shares surged as the Centers for Medicare & Medicaid Services reported better-than-forecasted government reimbursement to Medicare insurers. Humana took the lead with a 10.7% increase, followed by CVS Health (+5.9%), which also upgraded its full-year outlook and reported some important leadership developments.

CVS Health stock performance has also been particularly striking, up 54% for the year so far, to be the best-performing S&P 500 stock of 2025. The company's recent activities, such as bringing in a new CFO and chief medical officer, indicate strategic steps to position itself more strongly within the healthcare industry.

“This is a clear indication that the healthcare sector is well-positioned to weather economic uncertainty,” says Sarah Miller, senior equity analyst at Greenfield Investments. “Government support combined with robust fundamentals makes these stocks attractive for long-term investors.”

The surge indicates investors' confidence that the sector is capable of enduring wider economic uncertainty, driven by government intervention and solid fundamentals.

Tech stocks recover on buying interest

Tech stocks recovered on buying interest following days of intense selling. Megacap stocks such as Nvidia and Tesla recorded gains as investors spotted undervalued opportunities after sharp falls. The Nasdaq Composite gained 3.6% in Tuesday's session, with semiconductor stocks leading the way—Marvell Technology rose 11.9%, while Broadcom rose 8.1%.

The bounce is in line with historical trends where conditions of being oversold tend to result in technical bounces. Analysts note that even as volatility is high, tech's long-term growth opportunities continue to entice investors seeking bargains in downturns in the market.

“Tech is always the first to bounce back because it represents the future,” explains David Chen, portfolio manager at Horizon Capital. “Investors know that even in tough times, companies driving innovation will lead the next wave of growth.”

Not all technology companies participated in the euphoria, however. Solar technology company Enphase Energy fell 11.2%, mirroring wider concerns regarding demand for renewable energy in a time of global economic uncertainty.

Defense contractors reap from spending vow

Defense contractors also reported solid performances, helped by the White House's promise to spend $1 trillion on defense in fiscal 2026. Lockheed Martin, General Dynamics, and RTX all reported gains of more than 2%, helped by rising demand for aerospace and defense products.

The iShares Aerospace & Defense ETF rose more than 2%, besting wider indices such as the S&P 500 on Tuesday. The sector remains a draw as geopolitical tensions and government budgets support its future.

These advances illustrate how particular sectors can flourish even as wider markets struggle against macroeconomic issues such as tariffs or decelerating global growth.

While uncertainty persists across Wall Street, these pockets of strength demonstrate that opportunities exist for investors willing to look beyond short-term volatility.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.

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