Healthcare stocks fall after weak US jobs data

Healthcare and related stocks declined in afternoon trading on March 6 after the US February jobs report showed an unexpected contraction in employment. According to the Bureau of Labor Statistics, the economy lost 92,000 nonfarm payroll jobs, compared with economists’ expectations for a 50,000 gain.

The healthcare sector, typically a steady source of employment growth, shed 28,000 positions. The losses have heightened concerns that an economic slowdown could reduce healthcare spending and demand for services, pressuring companies across the sector.

Commentary in the market noted that stocks can overreact to macroeconomic headlines, and that sharp declines may create opportunities in individual names. Nonetheless, the jobs data prompted investors to reassess the near-term outlook for healthcare demand and valuations.

The negative reaction was broad, affecting providers, medical technology, biopharma and healthcare services companies. Names cited as trading lower included Tenet Healthcare, Revvity, Avantor, Azenta and Elanco, as well as PacBio, CONMED, Moderna, QuidelOrtho and Tandem Diabetes Care.

In healthcare services and related technology, AMN Healthcare Services, RadNet, Evolent Health, Repligen and Amphastar Pharmaceuticals were also reported among the stocks moving down following the jobs release.

The moves were framed as meaningful responses to macroeconomic news rather than company specific developments. For several of these companies, prior trading history shows frequent large price swings, underscoring their sensitivity to shifts in investor sentiment.

Pacific Biosciences (PacBio) shares were highlighted as highly volatile, with 83 daily moves greater than 5% over the past year. The latest decline was presented as significant but not one that fundamentally altered market perceptions of the business.

Evolent Health has also shown pronounced volatility, recording 46 moves greater than 5% in the last year. The current reaction to the jobs data similarly reflects macro concerns rather than a change in the company’s specific outlook, according to the coverage.

Revvity’s stock has been somewhat less volatile, with 12 moves of more than 5% in the past year. The latest drop was again linked to the broader macro environment and shifting risk appetite in the sector.

The February jobs report followed other recent macroeconomic developments that have influenced trading in these names. Seven days earlier, both PacBio and Evolent Health had declined after a stronger than expected US wholesale inflation reading.

In January, the Producer Price Index rose 0.5%, above the 0.3% economists had forecast. Core PPI, excluding food and energy, increased 0.8%, also well above the expected 0.3%. The upside surprise raised concerns that inflation might be more persistent, with potential implications for future interest rate decisions.

Those inflation figures prompted sharp declines in major US equity indices including the S&P 500 (SPX), Dow Jones and Nasdaq, as investors reassessed the economic outlook. Healthcare and life sciences stocks participated in that broader selloff.

Revvity’s previous notable move came 11 days before the jobs report, when its shares fell 2.9% after the Trump administration announced new global tariffs. The duties, imposed under the Trade Act of 1974 at a 15% rate for up to 150 days, revived trade policy uncertainty after a Supreme Court ruling limited use of a different statute.

The rapid reintroduction of tariffs added another layer of uncertainty for companies reliant on global supply chains and trade, contributing to investor caution around earnings prospects and overall economic activity.