Hospitals, Insurers Sink as Obamacare Ruling Jolts Investors

Health-care stocks were among the worst performers in the S&P 500 selloff Monday as hospitals and insurance stocks sink on a judge’s ruling Friday that Obamacare is unconstitutional.

A judge sided with Texas late Friday in a lawsuit alleging that Congress’s decision in 2017 to kill a related tax penalty essentially voided the entire Affordable Care Act. While many analysts expect the ruling to be reversed by higher courts, the news adds to volatility in a sector that had barely recovered from political overhangs this year and yet remains the top performing sector in the S&P 500.