Health stocks hit after Trump taps RFK for top regulator post

The announcement of Robert F. Kennedy Jr. as a potential Health Secretary creates uncertainty in the pharmaceutical sector, particularly for companies heavily reliant on vaccine sales. The market's immediate negative response indicates investors may foresee stricter regulations and pushback against pharmaceutical companies, which could stunt growth in the sector.

Similar to Pfizer, Moderna's share price is likely to be under pressure as investors digest the implications of Kennedy's nomination. The company's reliance on the public's perception of vaccines means any skepticism at the leadership level could lead to lower demand and investments.

Companies like AstraZeneca and GSK, while also facing pressure, may experience a slightly less direct impact than those directly involved in COVID-19 vaccine production. However, investor sentiment is likely to remain cautious in the near-term due to overall sector instability.

Broader healthcare stocks may also feel the effects of increased regulatory scrutiny anticipated with Kennedy's nomination. Investors might seek to move away from these stocks until there's more clarity on the incoming administration's direction.