Health care stocks rose late Tuesday afternoon with the NYSE Health Care Index gaining 1.9% and the State Street Health Care Select Sector SPDR ETF (XLV) adding 2.1%.
The iShares Biotechnology ETF (IBB) climbed 2.3%.
In corporate news, Eli Lilly (LLY) entered into a multiyear research collaboration and exclusive worldwide licensing deal with Nimbus Therapeutics to develop a novel oral treatment for obesity and other metabolic diseases. Eli Lilly shares rose 2%.
Brookdale Senior Living (BKD) has an improved portfolio and positive free cash flow, which allows it to benefit from supportive industry dynamics, BofA Securities said, upgrading the stock to buy from underperform and raising its price target to $13 from $6.75. Brookdale shares gained 4.2%.
TPG (TPG) is close to buying the UK operation of UnitedHealth's (UNH) Optum unit, Sky News reported. UnitedHealth shares climbed 2.3%.
Hospitals face headwinds in 2026 amid moderating fundamentals, restrictive policy, and low-quality near-term upside from state-directed payment program approvals, BofA said. Its top hospital pick is Tenet Healthcare (THC), given its exposure to ambulatory surgery centers. Tenet shares rose 0.5%.
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