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S&P 500 Closed Higher amid Trump’s News Conference

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Aug. 18 2020, Updated 9:31 a.m. ET

Nasdaq closed at record highs for the fifth day

After closing flat for the first time in nine years on Tuesday, the S&P 500 was volatile on Wednesday. On January 11, the S&P 500 closed the day at 2,275.32—a gain of 6.42 points (0.28%). Energy, utilities, and technology stocks moved higher and supported the index, while the health care sector fell.

The Nasdaq Composite closed the day at another record high of 5,563.65—a gain of 11.83 points (0.31%). It’s the fifth consecutive trading day in which Nasdaq closed at record highs. The Dow Jones Industrial Average moved close to 20,000. It closed January 11 at 19,954.28—a gain of 0.5 % (98.75 points). The SPDR S&P 500 ETF (SPY) rose 0.28%.

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Trump’s comments on healthcare

Trump’s first news conference since the US election took place yesterday. The market was broadly positive by the close of the day, but the health care sector fell due to Trump’s negative comments. He said that the government needs to look at how it buys drugs from pharma companies. He also added that pharmaceutical companies are getting away with murder by charging higher prices. Now, the market’s focus shifted to the 4Q16 earnings season which starts on January 13. Donald Trump’s inauguration is on January 20.

Health care sector 

After rising for six consecutive trading days and reaching the highest levels since November 11 on Tuesday, the health care sector fell on January 11. The S&P 500 Healthcare sector fell 1.0% and recorded the highest losses out of 11 major sectors on January 11 due to Trump’s comments. Endo International (ENDP) and Perrigo (PRGO) were the biggest losers in the health care sector. Trump’s comments on higher drug prices, the need for a new bidding process in the health care industry, and his plans to import drugs at cheaper prices triggered a sell-off in the health care sector.

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