Why CVS Health Stock Is Sinking Today
Shares of CVS Health (NYSE: CVS) were sinking 6.3% as of 11:40 a.m. EDT on Monday after falling as much as 11.1% earlier in the day. The healthcare giant was affected by the overall stock market sell-off caused by escalating worries about the novel coronavirus pandemic and the Federal Reserve Board's action to cut interest rates to 0% and inject $700 billion into the U.S. economy.
Although some healthcare stocks shouldn't be affected much by the COVID-19 outbreak, CVS Health isn't one of them. The company's retail business is likely to be hurt as consumers stay home to follow the social distancing recommendations from governmental authorities. CVS Health also owns Aetna, which could potentially experience higher medical costs if a large number of its members require hospitalization due to COVID-19.
Image source: CVS Health.
Source Fool.com
