Trump's Drug Price Slash Plan Sparks Retail Buzz As Investors Eye Big Pharma Fallout

Retail buzz surrounding pharmaceutical and healthcare stocks surged late on Sunday following President Donald Trump's announcement that he would sign an executive order to slash prescription drug prices in the United States. 

However, opinions among retail investors are divided, with a significant portion expressing concerns about the legality and potential impact of the move.

In a post on Truth Social, Trump revealed that he would sign an executive order to reduce drug prices by 30% to 80%, citing a "Most Favored Nation Policy" that would align U.S. prices with the lowest-paying country. 

This policy, Trump said, would address the long-standing issue of drug prices in the U.S. being significantly higher than in other countries. 

The announcement sparked a surge in retail message volume for prominent health care firms. 

Pfizer, UnitedHealth Group, and Hims & Hers were among the top tickers discussed after the president's post, as investors speculated on the potential market ramifications.

Despite the surge in retail chatter, some investors on Stocktwits raised doubts about the executive order's constitutionality. 

One user questioned whether the president had the authority to impose such price controls without Congressional approval, labeling the EO as "unconstitutional" and suggesting it would likely face legal challenges. 

Another user argued that while the U.S. indeed pays higher drug prices, the order's chances of passing through Congress were slim, and its broader implications for government intervention in private markets could set a dangerous precedent.

While some retail investors expressed support for Trump's proposal, particularly in light of high drug costs in the U.S., many acknowledged that the executive order's ability to reduce prices in the long term was unlikely, given the legal hurdles and Congress's central role in regulating drug pricing policy.

The SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500, has declined 3.5% year-to-date, while the Invesco QQQ Trust, Series 1 (QQQ), which tracks the Nasdaq-100, is down 4.4%. 

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has fallen 2.7%.

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