NEW YORK (Reuters) - As concerns over the spreading coronavirus outbreak hammered U.S. stocks, one corner of the market was confronted with another potentially game-changing prospect: a Bernie Sanders nomination.
The S&P 500 managed healthcare index of health insurance stocks .SPLRCHMO tumbled over 7% early Monday afternoon, compared to a 3.5% fall for the overall S&P 500 .SPX. Shares of industry bellwether UnitedHealth Group Inc (UNH.N) dropped 7.6% and were the biggest individual drag on the Dow Jones Industrial Average .DJI, while shares of Centene Corp (CNC.N) fell more than 10%.
Sanders, a U.S. senator whose progressive agenda includes a national Medicare for All health plan, scored a dominant win in the Nevada caucuses over the weekend, adding momentum in his bid for the Democratic presidential nomination to face off against U.S. President Donald Trump in the November general election.
The Vermont senator authored Medicare for All legislation that would essentially abolish private insurance in favor of a single government-run plan that covers every American. The ambitious proposal would cost more than $30 trillion over 10 years, according to independent analyses.
His dominant performance has taken some market participants by surprise.
“It wasn’t clear that it was going to be that big of a win for him,” said Sarah James, a healthcare analyst at Piper Sandler, adding that the senator “is still pushing his Medicare for All, anti-health insurer platform.”
James said most investors doubt Sanders’ health-reform plan will receive enough support to pass in Congress and would be
