Healthcare stocks were higher Thursday afternoon, with the NYSE Healthcare Index rising 2.3% and the State Street Health Care Select Sector SPDR ETF (XLV) adding 2.1%.
The iShares Biotechnology ETF (IBB) advanced 1.5%.
In corporate news, AbbVie (ABBV) and other healthcare stocks were rising after the Trump administration reportedly proposed a new rule to curb hospital drug markups in Medicare. According to The Associated Press, the rule targets hospitals in the 340B program, which allows them to buy outpatient drugs at reduced prices for low-income patients but often bill insurers at higher rates and keep the difference. AbbVie rose 3.4%, Johnson & Johnson (JNJ) was up 2.8%, Bristol-Myers Squibb (BMY) gained 2.6%, and Merck (MRK) added 2.2%.