As investors prepare for the Federal Reserve to raise interest rates, the health IT and biotechnology sectors have lost momentum and suffered losses, Nasdaq reported Jan. 30.
The Nasdaq biotechnology index has fallen more than 14 percent in January, and large pharmaceutical companies have also taken a hit. Moderna's stock fell 37 percent on the S&P 500, and BioNTech is down 37 percent, too.
Investors are favoring safe bets in industries like energy and banking and dumping stocks in high-risk, high-reward companies in the technology, biotech and healthcare sectors.
Potential regulatory challenges such as potential drug pricing reform and a tougher crackdown on mergers may also be affecting investors' decisions to sell off their stock.