# Why the prognosis for healthcare stocks is uncertain ahead of Congress’ new makeup

- URL: https://talkfuse.com/story/why-the-prognosis-for-healthcare-stocks-is-uncertain-ahead-of-congress-new-makeup/
- Published: 2026-11-07T16:02:33+00:00
- Updated: 2026-11-07T16:19:43+00:00
- Original publisher: CNBC (publisher lean: Centre)
- Original article: https://www.cnbc.com/2026/11/07/healthcare-stocks-may-face-trouble-due-to-midterm-results.html
- Topics: Business, Government, Markets, Politics

## Key points

- Mizuho’s Jared Holz expects political gridlock to cloud healthcare stocks.
- He favours selective investing, including some medical device companies.
- The healthcare ETF is up about 32% since January 2025.

## Summary

Healthcare stocks may struggle to gain momentum as Democrats prepare to take control of Congress, according to Mizuho healthcare specialist Jared Holz. He expects political gridlock to limit near-term change, leaving investors to choose carefully among healthcare companies and subsectors.

The State Street Health Care Select ETF rose 3% the day after Election Day, then was caught up in Thursday’s market sell-off and finished the week virtually flat. Holz said pharmaceutical shares looked expensive compared with technology stocks, while some medical device stocks were near multi-year lows. The ETF has gained about 32% since President Trump took office in January 2025, nearly 9 percentage points ahead of the S&P 500; Holz sees potential for the sector if a Democrat wins the presidency in 2028 and the party also holds both chambers of Congress.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.