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Why a Clutch of Pharmaceutical and Biotech Stocks Escaped the Market's Swoon on Thursday
As predicted by many analysts, economists, and investors, the sweeping tariffs announced by the Trump administration on Wednesday decimated the stock market on Thursday. It had one of its worst trading days in years, and almost no sector of the economy was spared. Two areas that suffered relatively light damage, however, were pharmaceuticals and biotech.Although few stocks in these fields thrived, some didn't fall as much as other titles. Compared to the S&P 500's (SNPINDEX: ^GSPC) 4.8% tumble, Catalyst Pharmaceuticals' (NASDAQ: CPRX) 1.5% drop was mild, as was Veeva Systems' (NYSE: VEEV) 2% slide. The rare stock actually landed in positive territory, specifically Amgen's (NASDAQ: AMGN) 1.5% rise and AstraZeneca's (NASDAQ: AZN) 2.4% bump.The main reason for this is that, somewhat unexpectedly, the Trump administration didn't impose tariffs on manufacturers of pharmaceutical goods. Previously, the president stated rather emphatically that foreign pharma makers would be slapped with 25% duties on their wares. Yet, the sector was very notable for its absence on the long list of duties imposed by the government. Continue reading
As predicted by many analysts, economists, and investors, the sweeping tariffs announced by the Trump administration on Wednesday decimated the stock market on Thursday. It had one of its worst trading days in years, and almost no sector of the economy was spared. Two areas that suffered relatively light damage, however, were pharmaceuticals and biotech.
Although few stocks in these fields thrived, some didn't fall as much as other titles. Compared to the S&P 500's (SNPINDEX: ^GSPC) 4.8% tumble, Catalyst Pharmaceuticals' (NASDAQ: CPRX) 1.5% drop was mild, as was Veeva Systems' (NYSE: VEEV) 2% slide. The rare stock actually landed in positive territory, specifically Amgen's (NASDAQ: AMGN) 1.5% rise and AstraZeneca's (NASDAQ: AZN) 2.4% bump.
The main reason for this is that, somewhat unexpectedly, the Trump administration didn't impose tariffs on manufacturers of pharmaceutical goods. Previously, the president stated rather emphatically that foreign pharma makers would be slapped with 25% duties on their wares. Yet, the sector was very notable for its absence on the long list of duties imposed by the government.
