Healthcare Stocks’ Reaction On Wednesday To Biden’s Win
Stocks within the healthcare sector rallied in Wednesday’s trading session after former Vice President Joe Biden scored impressive victories in the Super Tuesday primaries in the race for the Democratic presidential nomination.
While Biden scored key primary victories in states such as North Carolina, Virginia and Minnesota, he also scored an upset victory over Senator Bernie Sanders in delegate-rich Texas. The wins have boosted Biden’s chances of becoming the Democratic Party’s presidential nominee.
Following Biden’s impressive victories, many healthcare stocks recorded double-digit percentage gains in Wednesday’s regular trading session.
Anthem Inc. and Centene Corp. gained 15.6 percent each, while Humana Inc. surged 14.4 percent. UnitedHealth Group and Cigna both climbed 10.7 percent each, while CVS Health rose 5.6 percent.
Healthcare stocks had earlier come under pressure each time Sanders gained ground over his rivals for the presidential nomination.
Biden is seen as likely to be a much more pro-business president than Sanders. While he was vice president, Biden helped former President Barack Obama to bring the Affordable Care Act into law.
Biden has called for expanding the healthcare reform law known as Obamacare, rather than scrapping private insurance in favor of a Medicare For All plan, as proposed by Sanders.
Sanders’ Medicare for All plan would establish a government-run, single-payer health care system, abolishing private medical insurers and leading to the termination of current health insurance plans. His plan calls for nationalizing the health insurance industry.
Meanwhile, Biden has said he would like to see the Affordable Care Act improved and enlarged.
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