Health care stocks are trading higher Monday following President Trump’s drug pricing speech on Friday afternoon. Call it a relief rally. Or, the Trump bump.
The snap judgment from Wall Street is that Trump’s proposals to rein in drug prices will have a limited impact on biotech and pharmaceuticals companies. But will this be the D.C. “clearing event” that sparks a deeper and sustainable rally in biotech and drug stocks?
Answering that question will take some time, but the iShares Nasdaq Biotechnology ETF opened 1.4 percent higher on Monday, even as Health and Human Services Secretary Alex Azar was delivering a speech that criticized drug makers for hurting American consumers with high drug prices. The SPDR S&P Biotech ETF was also trading higher by 1.6 percent Monday morning.
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