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Biotech and healthcare ETFs rise as chip weakness sparks a rotation
Since semiconductors peaked on June 22, the iShares Biotechnology ETF has gained more than 20% and XLV is up about 16%, helped by strength across biotech, pharma, and life-sciences tools.
Yahoo Finance highlights a notable divergence between healthcare stocks and semiconductors, as the chip selloff has coincided with strength in biotech and healthcare exchange traded funds. Since semiconductors peaked on June 22, the iShares Biotechnology ETF (IBB) has climbed more than 20%, while the Health Care Select Sector SPDR Fund (XLV) is up roughly 16%, according to the outlet.
The move has included sharp day-to-day swings. XLV gave back some gains Thursday, posting its worst day in five weeks after Wednesday’s 3.5% surge, its biggest one-day gain in more than a year.
Yahoo Finance also points to breadth within the sector. Excluding Moderna, roughly two-thirds of healthcare stocks in a screen of more than 100 names are higher this week, with biotech, pharmaceutical, and life-sciences tools among the leaders, including Merck, IQVIA, Danaher, and Thermo Fisher.
The story notes that the rally is not uniform, with managed-care stocks remaining weak. It also cites rotation dynamics as semiconductor leaders lose ground, while select healthcare names add market value, and says IBB has broken above its prior 2021 high near $178, trading above $210 Thursday afternoon.
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