A Thursday stock market rally faltered as President Donald Trump released letters demanding pharmaceutical companies address drug pricing.
A rally in U.S. stocks lost momentum Thursday afternoon following social media posts by President Donald Trump, who shared letters to executives at several U.S. and European pharmaceutical corporations, calling for immediate action on drug pricing issues.
The Dow Jones Industrial Average fell by 275 points, or 0.6%, marking its fourth consecutive day of losses. The S&P 500 dipped 0.4%, sliding into negative territory, while the Nasdaq Composite decreased by 0.15%, despite previously rising by as much as 1.5% earlier in the day.
In his communications to companies such as Pfizer, Trump outlined a timeline for addressing concerns related to drug prices. His letter demanded, “Moving forward, the only thing I will accept from drug manufacturers is a commitment that provides American families immediate relief from the vastly inflated drug prices and an end to the free ride of American innovation by European and other developed nations.”
Initially, the S&P and Nasdaq indexes found support from gains in tech giants Meta Platforms (META) and Microsoft (MSFT), which rose 12% and 4%, respectively. However, the broader market weakened as pharmaceutical stocks declined.
Shares in Merck (MRK) dropped by 4%, dragging down the Dow. Meanwhile, shares of Eli Lilly (LLY) and Pfizer (PFE) fell by 2% and 1.6%, respectively. U.S.-traded shares of Novo Nordisk (NVO) and AstraZeneca (AZN) also saw declines, falling 5% and 3.6%, respectively.
According to CNN, the stock market’s performance was influenced by the pharmaceutical sector, which faced pressure due to heightened scrutiny over drug pricing policies.
Source: Original article