Hotter-than-expected inflation data sent U.S. stock indexes lower on Wednesday, but one sector was broadly resisting the slump.
Big Pharma led the S&P 500 on a generally down day for the market as the three major indexes traded in the red. Eli Lilly was the top performer in the benchmark index, climbing 4.1% to $1,214.
Shares of Lilly, the world's largest pharmaceutical company by market value, rallied above their 50-day moving average to mark their best level since August. On Lilly's heels were Merck and AbbVie, which showed equally strong momentum.
Merck, too, climbed above its 50-day moving average as shares rose 3.7% to $147.29. AbbVie, meanwhile, advanced 3.5% to $283.86, pacing toward a record closing high.
The gains weren't driven by a company-specific catalyst; rather, the move was triggered by September's Consumer Price Index (CPI) reading. The CPI, a measure of U.S. goods and services costs, rose by 0.6% month over month in September. That pushed the 12-month rate to 3.7%, marking a sharp acceleration from 3.4% in August.
The resulting risk-off sentiment sent investors piling back into healthcare. Historically, the sector has acted as a defensive haven during broader market volatility and a primary destination for anti-tech rotations -- a trend that has gained traction in recent months.
As recently as June, investors rotated away from artificial-intelligence stocks and into value and defensive sectors, notably healthcare, industrials, and financials.
Other notable gainers Wednesday included Bristol Myers Squibb, Pfizer, Amgen, and Regeneron Pharmaceuticals. Reflecting the broad-based strength across the group, the iShares U.S. Pharmaceuticals exchange-traded fund climbed 2.5% on Wednesday.
Insurers weren't missing out on the rally, either. Industry leader UnitedHealth Group rose 2.9% to $388.54 to surpass its own 50-day moving average.
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