The U.S. Department of Labor announced its latest data on inflation this morning. According to the report, the Consumer Price Index rose by an unsightly 8.3% in August relative to the same period a year ago. U.S. stocks, as a result, are mostly in the red Tuesday morning.
Growth-dependent healthcare stocks are taking this news particularly hard today. As of 10:54 a.m. ET on Tuesday, shares of the continuous glucose monitoring giant DexCom (NASDAQ: DXCM) were down by 5.95%, the telemedicine services company Teladoc Health (NYSE: TDOC) saw its stock decline by 6.75%, and the healthcare-software company Veeva Systems (NYSE: VEEV) was lower by 3.55%.
What's the common thread connecting these disparate healthcare stocks today? Wall Street is deeply concerned that red-hot inflation will curtail consumer spending in 2023, even for vital goods and services such as diabetes care, doctor visits, and clinical studies for important new drugs.
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Why DexCom, Teladoc Health, and Veeva Systems Shares Are Slumping Today