New York, February 1, 2026, 13:24 EST — Market closed.
- The main U.S. healthcare sector ETF climbed roughly 0.6% on Friday, wrapping up January essentially flat.
- As inflation concerns and policy uncertainty weighed on the broader market, investors shifted their bets toward defensive stocks.
- Traders are staying cautious amid a packed week of major pharma earnings and Medicare Advantage rate updates.
The Health Care Select Sector SPDR Fund (XLV), a popular collection of major U.S. healthcare stocks, ended Friday up roughly 0.6%, closing at $154.74. Nasdaq data indicated the fund carried a defensive bid into the weekend.
The broader market slipped into the weekend amid a tug-of-war between mixed earnings, renewed inflation concerns, and an upcoming Federal Reserve chair decision. The S&P 500 dropped 0.43% on Friday, according to Reuters calculations.
The S&P 500 Health Care sector index ticked up 0.57% to 1,802.62 on Friday, though it slipped 0.18% over January, according to S&P Dow Jones Indices data. It’s not exactly a rally, but it suggests investors continue to value the sector’s more reliable cash flows.
By early Friday afternoon, only healthcare and consumer staples sectors were in positive territory as the S&P tumbled, Investopedia reported. That selling pressure held through the close.
Insurers continue to drag the sector down. On Jan. 27, major managed-care stocks dropped after U.S. regulators floated a proposed 0.09% average hike in 2027 Medicare Advantage payments — the private-plan program for seniors that many carriers rely on for profits. “If rates are in this range, membership growth will remain low,” Bernstein analyst Lance Wilkes noted; the final rates usually come out in early April. Reuters
UnitedHealth fueled concerns by warning that 2026 revenue will decline. “Investors hoping for a quick turnaround may have to wait longer than hoped,” Morningstar analyst Julie Utterback noted. Reuters
Elevance’s outlook failed to ease concerns. CEO Boudreaux flagged that the proposed Medicare payments fall short of covering costs. On top of that, Leerink analyst Whit Mayo highlighted ongoing Medicaid pressures weighing on guidance.
U.S. markets were closed Sunday, turning the spotlight to a busy earnings week ahead. Pfizer plans to release its Q4 and full-year 2025 results Tuesday, Feb. 3, with a webcast set for 10 a.m. EST, according to the company.
Merck’s fourth-quarter 2025 earnings call is set for Feb. 3, per its investor event calendar. The focus will be on pipeline progress and how quickly demand is moving in its major franchises.
Eli Lilly will release its Q4 2025 earnings on Wednesday, Feb. 4, the company confirmed. The stock has turned into a key gauge of risk appetite in healthcare, largely because the market has priced in strong growth from its weight-loss drugs.
AbbVie will report earnings on Feb. 4, marking a key week when drugmakers might shake up the healthcare sector as much as any big macro news.
The risk for bulls is straightforward: a renewed spike in rate concerns around Medicare Advantage, or underwhelming guidance from big pharma, could wipe out Friday’s defensive rally in no time. The next major trigger arrives Tuesday with earnings from Pfizer and Merck, then Lilly and AbbVie report the following day.
