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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Because I have invoked FAVORED NATIONS STATUS FOR THE UNITED STATES OF AMERICA, DRUG PRICES ARE FALLING AT LEVELS NEVER SEEN BEFORE, 500%, 600%, 700%, and more. No other President has been able to do this, BUT I HAVE! This is also the answer to much less expensive, and far better, HEALTHCARE! Republicans, remember, this was done by us, and nobody else. This is a revolution in medicine, the biggest and most important event, EVER. If this story is properly told, we should win the Midterm Elections in RECORD NUMBERS. I AM THE AFFORDABILITY PRESIDENT. TALK LOUDLY AND PROUDLY! President DJT”
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 statement about invoking ‘Favored Nations Status’ and the resulting dramatic decrease in drug prices could lead to volatility in the stock market, particularly affecting pharmaceutical companies like Amgen Inc, Merck & Company, and Pfizer Inc. Investors might anticipate potential revenue declines for these companies due to reduced drug prices, leading to possible sell-offs. Conversely, healthcare ETFs such as the Health Care Select Sector SPDR Fund, Vanguard Health Care ETF, and iShares Biotechnology ETF might experience mixed reactions as investors weigh the broader implications for the healthcare sector.
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)).