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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
““President Donald J. Trump Announces First Deal to Bring Most-Favored-Nation Pricing to American Patients””
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Donald Trump’s announcement of a deal to implement Most-Favored-Nation pricing for American patients could potentially lead to a decrease in drug prices, impacting the revenue and profit margins of pharmaceutical companies like Amgen Inc, Merck & Company, and Pfizer Inc. This policy shift might result in a negative sentiment towards these stocks, causing a decline in their market value. Consequently, healthcare-focused ETFs such as the Health Care Select Sector SPDR Fund, Vanguard Health Care ETF, and iShares Biotechnology ETF could also experience volatility as they hold significant positions in these pharmaceutical companies.
Here are some of the stocks that might be affected:
Amgen Inc ((AMGN)),
Merck & Company ((MRK)),
Pfizer Inc ((PFE)),
Health Care Select Sector SPDR Fund ((XLV)),
Vanguard Health Care ETF ((VHT)),
iShares Biotechnology ETF ((IBB)).