What Happened?
A number of stocks fell in the afternoon session after worries over worsening trade relations with China were triggered by critical comments from President Donald Trump.
The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. The trade dispute flared up after China imposed export controls on rare earth minerals, which are critical components for high-tech manufacturing. The escalation of the trade war raises concerns about supply chain disruptions and increased costs for technology companies, which are heavily reliant on global trade, leading to a broad sell-off in the sector.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Health Insurance Providers company UnitedHealth (NYSE: UNH) fell 3%. Is now the time to buy UnitedHealth? Access our full analysis report here, it’s free for active Edge members.
- Senior Health, Home Health & Hospice company Brookdale (NYSE: BKD) fell 2.9%. Is now the time to buy Brookdale? Access our full analysis report here, it’s free for active Edge members.
- Branded Pharmaceuticals company Collegium Pharmaceutical (NASDAQ: COLL) fell 3.9%. Is now the time to buy Collegium Pharmaceutical? Access our full analysis report here, it’s free for active Edge members.
- Medical Devices & Supplies - Imaging, Diagnostics company QuidelOrtho (NASDAQ: QDEL) fell 3.8%. Is now the time to buy QuidelOrtho? Access our full analysis report here, it’s free for active Edge members.
- Therapeutics company Biogen (NASDAQ: BIIB) fell 2.9%. Is now the time to buy Biogen? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Collegium Pharmaceutical (COLL)
Collegium Pharmaceutical’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Collegium Pharmaceutical is up 11.8% since the beginning of the year, but at $32.02 per share, it is still trading 19.1% below its 52-week high of $39.59 from September 2025. Investors who bought $1,000 worth of Collegium Pharmaceutical’s shares 5 years ago would now be looking at an investment worth $1,475.
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