Medicare-related stocks rise after poor Biden debate performance

Democrat candidate, U.S. President Joe Biden, and Republican candidate, former U.S. President Donald Trump, attend a debate ahead of the U.S. presidential election, in Atlanta, Georgia, U.S., June 27, 2024. 

Brian Snyder | Reuters

One group of health insurance stocks appeared to be rallying on the notion that President Joe Biden’s poor debate performance on Thursday night would bring another term for former President Donald Trump.

RBC analyst Ben Hendrix chalks up Friday’s rally in Medicare Advantage stocks on the thesis that “a second Trump term would ease regulatory and reimbursement headwinds weighing on the managed care stocks, particularly the Medicare Advantage leaders,” such as UnitedHealth, Humana and CVS Health.