New York, Jan 27, 2026, 14:28 EST — Regular session
- AbbVie shares climbed roughly 1.5% in afternoon trading, hitting a session peak close to $227
- Health insurers fall back on a proposed Medicare Advantage rate, causing a divide in healthcare
- Attention shifts to the Fed on Wednesday and AbbVie’s Feb. 4 earnings, which will offer guidance for 2026
AbbVie Inc. shares climbed roughly 1.5% to $224.12 in Tuesday afternoon trading, having peaked earlier at $226.83. Johnson & Johnson also rose about 1.5%, and Pfizer was up around 2.6%. Meanwhile, Eli Lilly fell close to 1.2%.
The move is crucial as the market attempts to sustain a rally ahead of a packed week of earnings and a new Federal Reserve meeting. In healthcare, money is flowing quickly — drugmakers have shown more stability compared to insurers, who are facing pressure from policy uncertainty.
The S&P 500 hit a new high Tuesday as investors digested earnings and the Fed kicked off its two-day meeting. The market broadly expects rates to hold steady. “We’re looking at who the dissenters might be,” said Charlie Ripley, senior investment strategist at Allianz Investment Management, highlighting how traders are parsing potential shifts within the Fed. (Reuters)
Shares of health insurers tumbled after the Centers for Medicare and Medicaid Services floated a 0.09% average hike in 2027 Medicare Advantage payment rates — the government-backed program run by private insurers for seniors. UnitedHealth plunged roughly 20%, Humana slid about 19%, and CVS dropped near 14%. Baird’s Michael Ha flagged that “the potential rates compared to the cost trend will likely be insufficient,” while Leerink’s Whit Mayo described the proposal as “well below expectations.” (Reuters)
AbbVie isn’t directly linked to Medicare Advantage reimbursement rates, yet the selloff among insurers is setting the tone in healthcare stocks. Traders are rapidly distinguishing between “policy-exposed” companies and drugmakers, which face less immediate impact.
AbbVie investors now look ahead to earnings and 2026 guidance as the next key catalyst. The focus is on how quickly the company can offset Humira’s revenue decline and if demand remains strong for its newer immunology drugs.
Humira, the former best-selling arthritis drug worldwide, is now grappling with U.S. biosimilar competition—cheaper copies of complex biologic medicines. This shift has prompted a broad reset in expectations for the group. AbbVie’s shares often move more on confidence in how the transition unfolds than on quarterly results alone.
The stock swung between about $219.93 and $226.83 on Tuesday, highlighting how jittery the market remains even absent company-specific news. Macro factors and policy moves are driving the action instead.
Yet that defensive demand isn’t guaranteed to hold. A weaker forecast, intensified pricing pressure, or a surprise setback in a critical study could swiftly shift sentiment—especially given healthcare’s ongoing regulatory challenges.
One key risk looming over the market is the Fed’s statement on Wednesday, which could quickly shift rate expectations. After that, investors will turn to AbbVie’s full-year and fourth-quarter earnings report, set for Feb. 4 before the open, with a conference call at 8 a.m. Central. (AbbVie News Center)
