NEW YORK - US stocks ended mixed Tuesday, as a sharp sell-off in the healthcare sector triggered by a disappointing government reimbursement proposal offset broad gains in technology.

The Dow Jones Industrial Average dropped 0.83 percent to 49,003.41. In contrast, the S&P 500 rose 0.41 percent to a new record high of 6,978.6, and the Nasdaq Composite Index gained 0.91 percent to 23,817.1.

Nine of the 11 primary S&P 500 sectors finished higher, with technology and utilities advancing 1.42 percent and 1.25 percent, respectively. However, the healthcare sector tumbled 1.66 percent, led by a massive retreat in insurance providers.

The healthcare rout followed a proposal from the Centers for Medicare & Medicaid Services (CMS) to increase Medicare Advantage payment rates by a mere 0.09 percent for 2027. The figure fell far short of the 4 percent to 6 percent increase anticipated by Wall Street. CMS Administrator Mehmet Oz stated the policy aims to modernize risk adjustment and improve payment accuracy.

As a result, UnitedHealth shares plunged 19.61 percent, marking the company's steepest decline in decades. Humana fell 21.13 percent, while CVS Health, Centene, and Elevance Health all recorded losses exceeding 10 percent.

The broader market was supported by gains in "Magnificent Seven" tech giants ahead of their quarterly earnings reports. Apple rose 1.12 percent, and Microsoft gained 2.19 percent. Investors are closely watching for results from Meta, Tesla, and Microsoft on Wednesday, followed by Apple on Thursday.

US economic sentiment was dampened by a sharp decline in the US Consumer Confidence Index of The Conference Board, which fell by 9.7 points from December to 84.5 in January, marking the lowest reading since May 2014 and surpassing the lows recorded during the depths of the COVID-19 pandemic in 2020.

"Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened," said Dana Peterson, chief economist of The Conference Board. "All five components of the Index deteriorated."

In the bond market, the yield on the 10-year US Treasury note ticked higher to nearly 4.24 percent as the market waits for the Fed's first policy decision of the year.

Meanwhile, in Washington, lawmakers are still working to avert a potential government shutdown ahead of Friday's funding deadline, with debates centered on the Department of Homeland Security allotments in a 1.2-trillion-US-dollar spending package.