Berkshire Hathaway's $1.6 billion stake in UnitedHealth Group is helping to lift the Dow Jones Industrial Average to a new record as investors pile into healthcare sector funds.

Shares of UnitedHealth Group surged nearly 14% on Friday after billionaire Warren Buffett's Berkshire Hathaway bought 5 million shares of the company, providing a shot in the arm for investors who think the health conglomerate will turn around under its new CEO.

Bloomberg journalists discuss today's biggest winners and losers in the stock market. Listen for analysis on the companies making news on Wall Street.

Warren Buffett's modus operandi is to wait for price dislocations to present themselves. In a historically pricey stock market, locating value has been virtually impossible. Yet, with UnitedHealth Group stock losing more than half its value since the midpoint of April, a rare price dislocation has emerged.

Shares of some of UnitedHealth’s peers got a bump in the wake of Berkshire’s investment in the healthcare giant, and they all look cheaper based on price relative to expected earnings.

UnitedHealth has been the Dow’s worst performer of 2025, but jumped 13% Friday. Here’s why Buffett and other leading hedge funds suddenly love the stock.

Intel rallies as U.S. discusses taking stake in chip maker

US stocks were mixed on Friday as Wall Street tempered its rate-cut hopes amid economic data this week that showed higher-than-expected wholesale inflation and a rise in July retail sales. Traders also awaited Friday's meeting between President Trump and Russian President Vladimir Putin,