Health Care Down as Traders Doubt Defensive Plays

 Health-care companies fell sharply, as traders reversed bets that the sector would be able to weather inflation and rising interest rates better than the broad market.

It was inevitable that the bear market would enter a "phase when virtually nothing worked, even defensives," said strategists at brokerage Morgan Stanley, in a note to clients.

The Health Care Select Sector SPDR exchange-traded fund, which tracks the health-care industry group of the S&P 500, is now down by roughly 10% from its recent peak in April.

Online pharmacy company Truepill said it's temporarily halting prescriptions for Adderall and other controlled substances used to treat attention-deficit hyperactivity disorder and partner Cerebral told its clinicians to direct those orders to patients' local pharmacies.

The Food and Drug Administration rejected two proposed new cancer drugs that were developed in China, one from Chinese drugmaker Hutchmed and one from a partnership between Shanghai Junshi Biosciences and U.S. company Coherus Biosciences, underscoring a tougher U.S. regulatory stance toward such drugs.

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