There is no shortage of uncertainty for health care as the U.S. election draws near, but investors can cross the impact of the coronavirus off their list of worries for now. Share prices have mostly rebounded: The S&P Health Care Index has climbed 5.7% this year, lagging behind the S&P 500 by less than 2 percentage points. It will be difficult for health stocks to reverse that trend in the short term even if earnings season continues to be strong. A looming case in front of the Supreme Court threatens to reshape U.S. health policy, which has been governed by the Affordable Care Act since 2010. The looming election could also ding the outlook for health stocks if, say, Democrats were to sweep the presidency and gain control of both chambers of Congress.

Source: Wall Street Journal October 24, 2020 14:02 UTC