Key Takeaways:
US healthcare stocks rose in early trading Monday, with Eli Lilly & Co. and Novo Nordisk A/S each gaining more than 1% and UnitedHealth Group Inc. following higher.
The sector's advance came as investors rotated into defensive names ahead of a busy week featuring the Federal Reserve's policy meeting and earnings from major US technology companies, including Microsoft Corp., Meta Platforms Inc., Amazon.com Inc. and Apple Inc., traders said. The S&P 500 healthcare sector has drawn renewed interest from investors seeking exposure to drugmakers with strong pipeline momentum and weight-loss treatment franchises.
Eli Lilly added more than 1% in early trading, while Novo Nordisk's US-listed shares climbed a similar amount. UnitedHealth, the largest US health insurer by market capitalization, also rose. The moves positioned the healthcare sector among the top gainers in the S&P 500 in early trading.
The rally comes as the broader market adopts a cautious tone ahead of the Fed's two-day policy meeting beginning Tuesday and a wave of mega-cap technology earnings. The S&P 500 healthcare sector has outperformed the broader index this month as investors seek relative safety amid elevated valuations in technology stocks, with the sector's forward price-to-earnings ratio remaining below the broader market's multiple, according to FactSet data.
This article is for informational purposes only and does not constitute investment advice.
