Healthcare stocks are facing headwinds, leading to underperformance compared to the overall market. Several factors are contributing to this trend, including increased regulatory scrutiny and ongoing debates surrounding drug pricing policies.

The pharmaceutical industry, in particular, is under pressure as policymakers consider measures to control the cost of prescription medications. This uncertainty is weighing on investor sentiment and impacting stock valuations within the sector.

Furthermore, changes in healthcare legislation and reimbursement models are creating additional challenges for healthcare providers and insurers. These factors combined have led to a more cautious approach from investors, resulting in the current underperformance of healthcare stocks.