Technology stocks and healthcare sector rise due to divided US government
On Wednesday, technology stocks boosted the S&P 500 index (.SPX) while drugmakers and health insurers gained profit after Democrats failed to sweep the election in a “blue wave.”
According to investors, the United States government would be divided while there would be significant reforms for these sectors and corporate tax hikes.
The S&P healthcare sector (.SPXHC) earned revenue at 4.5%.
Health Insurer Unitedhealth Group (UNH.N) climbed by 10% while Cigna Corp (CI.N) and Anthem Inc (ANTM.N) had also shown double-digit percentage gains. Merck & Co MRK.N jumped by 4.8% while Regeneron Pharmaceuticals Inc REGN.O rose by 5.4%.
“Even in the event of a Biden presidency, reform to the healthcare sector would be much more difficult without strong Congressional support,” New York Life Investments Multi-Asset Solutions’ Portfolio Strategy Director Lauren Goodwin said in a statement.