
The bear market induced by the Federal Reserve’s monetary tightening officially ended in 2023, but it seems no one remembered to tell the biotech sector.
Biotech stocks lagged the broader market in 2023 and 2024, and the SDPR S&P Biotech ETF (NYSE: XBI) is trading at the same level as in 2017. While biotech stocks soared during the COVID-19 pandemic, investors now view the sector skeptically.