Pharma Stocks Decline on ‘Favored-Nation Clause’ Proposal
Ryan Christensen, account executive at Adviser Investments, has the market analysis for Friday, July 5. Major U.S. stock indexes closed down on the day: The Dow Jones Industrial Average and S&P 500 lost 0.2% while the NASDAQ Composite was off 0.1%. Although the Labor Department reported that nonfarm payrolls saw their largest monthly gain since January, that encouraging economic data contributed to today’s market volatility as investors pondered the diminished likelihood of an interest-rate cut after the Federal Reserve meeting at the end of July. Meanwhile, pharmaceutical stocks declined after President Trump proposed a “favored-nation clause” to help regulate drug prices. Eli Lilly, Merck and Johnson & Johnson each closed down more than 1%.