“I think there is a bifurcation between short and long term. Clearly, to this point the Goldilocks scenario and earnings have pushed stock prices higher but oil has perhaps tempered some sentiment near-term,” Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, told Reuters. “If oil falls below $40, one would see pressure on overall earnings, not just the energy sector.”
On the other hand, healthcare companies in the S&P 500 continued their forward march, gaining 1.0% Wednesday, with the biotechnology sub-sector taking charge.
“To boil it down, it comes down to valuation and momentum,” Mike Bailey, director of research at FBB Capital Partners, told CNBC. “I think a lot of investors are dusting off the old biotech handbook and looking at these names once again.”
Biotech was also strengthening on signs that the Trump administration softened on its drug-pricing stance and as breakthroughs, like Clovis Oncology’s cancer treatment, renewed investment interest, Bloomberg reports.
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