MARKETS Insider: Pharma stocks hit a new all-time high on Tuesday, as investors flocked to the companies that offer some of the biggest paychecks in the pharmaceutical industry.
The Dow Jones Industrial Average ended up 534 points higher, or $8.24 per share, at 17,527.10, the S&P 500 added a slightly higher 4.7 points, or 1.9%, to 1,766.24.
The Nasdaq Composite was up 18.1 points,or 2.6%, to 6,072.26.
The Russell 2000 index of smaller U.S. stock indexes also closed up by more than 1%.
The Dow, up about 400 points, was at the highest level in more than four years.
The S&s gained about 150 points.
The Nasdaq is up nearly 2%.
The S&ams climbed as much as 11.7% to close at 1,837.23.
The Dow closed above the 1,000 mark for the first time since March 2017.
The Semiconductor Index of global stocks, which tracks companies’ earnings and stock prices, rose 0.2% to 2,068.23, while the tech-heavy Nasdaq gained 0.4% to 696.72.
The tech industry is in the midst of a selloff as companies seek to reduce costs and focus on growth amid slowing consumer demand.
The pharmaceutical sector is facing pressure from an opioid epidemic that has driven up costs and forced insurers to hike deductibles.
The industry has been hit with a slew of lawsuits over the past year.
In its third-quarter earnings report Tuesday, Takeda, a Japanese-based pharmaceutical company, said it reported a $1.2 billion loss for the quarter, down from a $3.4 billion profit a year earlier.
It reported a revenue of $1,621 million, or 81 cents per share.
Pharmaceutical stocks have been rallying lately as the U.N. body says the global price of medicines is too high.
The average price of a prescription rose 2.7%, the highest rate in more then two years, according the median estimate of FactSet analysts.
The median price of an injectable drug rose 2%.
Pharmacy stocks have risen as a result of the industry’s aggressive marketing, which has helped drive prices higher.
In 2017, the average cost of an oral drug rose 5.7%.
The average price for an injective drug rose 9.2%.