Debt Ceiling Fears Spark Biotech Inferno
This episode of The Motley Fool's Market Checkup drills down on the hottest headlines and biggest market movers in the health-care sector.
In this video, health-care analyst David Williamson discusses Washington, D.C.'s impact on health-care stocks. This time, it isn't the Obamacare or the ongoing government shutdown, but the threat of breaching the debt ceiling that has investors spooked.
Shares of Nasdaq Biotechnology index were down more than 4% while the S&P Biotech index plunged more than 5%. Peering in to specific popular mid- and small-cap biotech stocks revealed even more carnage. However, today's big losses come on the tail of strong annual performance. As we enter a period of uncertainty with the possibility of a Lehman-like single-day market collapse, investors are paring positions in some of the market's biggest outperformers of the last 12 months and reducing their exposure to the volatile biotech sector.
Watch and find out which stocks were hit the hardest and what biotech investors should do in these turbulent times.
More Foolish insight
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The article Debt Ceiling Fears Spark Biotech Inferno originally appeared on Fool.com.David Williamson has no position in any stocks mentioned. Follow David on Twitter @MotleyDavid. The Motley Fool has no position in any of the stocks mentioned, either. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.