Kenvue On Track To Bounce Back From Record Lows — What’s Driving Stock Higher In Premarket?

Tylenol manufacturer Kenvue, Inc.‘s (KVUE) battered stock appears on track to rebound from Monday’s ravages inflicted by President Donald Trump's suggestion at a White House press conference that the usage of the iconic brand causes autism.

The president said Tylenol "is no good" and that pregnant women should "fight like hell" only to take it in cases of extreme fever.

Kennvue stock, which fell 7.47% on Monday to a record low, was last seen rising nearly 6% in premarket trading. The rebound comes after the company, a spin-off of Johnson & Johnson, and experts refuted Trump’s claims. 

The company reportedly said in a statement that “acetaminophen is the safest pain reliever option for pregnant women as needed throughout their entire pregnancy.” Acetaminophen is the base ingredient for Tylenol.

“We believe independent, sound science clearly shows that taking acetaminophen does not cause autism. We strongly disagree with any suggestion otherwise and are deeply concerned with the health risk this poses for expectant mothers."

A separate Reuters report stated that Citi analysts expected the stock to recover from the sell-off on Monday. “Overall, we see limited judicial risk following today's announcement, but there could be some impact on Tylenol consumption due to negative headlines,” they said.

This should alleviate investor concerns about the company facing a barrage of lawsuits over the alleged adverse effects of Tylenol.

The report also noted that many doctors disagreed with the Trump administration’s Tylenol claims and warned that these unfounded claims would likely impair maternal health.

Eric Liang Feigl-Ding, an American public health scientist, said on X that "RFK Jr and Trump are wrong—the largest & best study in the world in 2.5 MILLION KIDS—found no increased autism risk with acetaminophen (aka paracetamol, Tylenol) use by the mother during pregnancy."

"A crude unadjusted analysis found only a preliminary 5% risk, but once you adjust for family by matching using sibling controls (who didn’t get autism), the even tiny 5% risk vaporizes to 0%."

On Stocktwits, retail sentiment toward Kenvue stock flipped to 'extremely bullish' (92/100) by early Tuesday from 'bearish' a day ago, and the message volume was 'extremely high.'

Kenvue stock is down more than 21% this year.

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