XBI - For Biotech Stocks To Move Higher This Must Move Lower

2024-05-13 09:00:00 ET

Summary

• Biotech indexes, represented by IBB and XBI, have been facing pressure since March and trading at valuations seen in April 2020.
• The key factor influencing biotech valuations, discussed below, is expected to become more favorable in the second half as rate-cut uncertainty diminishes.
• While biotechs have significantly lagged behind the broader market, there is reason to be optimistic once inflation-related volatility subsides.

Biotech Pulse

Biotech stocks have faced challenges since March, with both the NYSE Biotechnology Index ( IBB ) and the S&P Biotechnology Select Industry Index ( XBI ) down about 2% for the year....

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