Investors' fever for artificial intelligence stocks left other areas of the market looking sickly by comparison. One was health care, which was decidedly out of favor as 2025 began. A larger-than-normal amount of regulatory uncertainty weighed down pharmaceutical companies, insurers and most of the other players in the multitrillion-dollar U.S. health ecosystem.
As the AI fever broke and some of those regulatory concerns settled, health care stocks got healthier, if not fully robust.
