Tech stocks are getting all the attention for their monstrous post-election rally -- but don't sleep on health care stocks. The Health Care Select SPDR ETF (XLV) is up more than 5% Wednesday, even better than the tech sector's 4% gain.
One factor of the spike is big surge for Biogen (BIIB), which soared nearly 40% following good news from the FDA about one of its Alzheimer's drugs.
But other Big Pharma firms, biotechs, insurers and other major health care firms were also up. Investors seem to be betting that the election outcome could diminish the chances of a "Bidencare" Affordable Care Act expansion getting approved by what could be a Joe Biden presidency and GOP-led Senate.
"The markets still believe Biden will win but what investors didn't want was a sweep," said Luis Strohmeier, a partner with Octavia Wealth Advisors.
James Ragan, director of wealth management research for D.A. Davidson, agreed: "Health care is doing well since it should benefit the most from a divided government. There would be less legislation."