Shares of the nation’s leading health insurance companies sank Monday after a handful of new polling data showed the Vermont Independent had eclipsed longtime front-runner Joe Biden among Iowans one week before the state’s key Democratic caucuses. Stocks including Anthem, UnitedHealth and Cigna all fell at least 2% in early trading. Molina Healthcare, an $8 billion health insurance company based in Long Beach, California, dropped 3.1%. “There was a battle between Sanders and Warren on who would be the progressive candidate. And Sanders appears to have won that battle,” said Thomas Block of Fundstrat Global Advisors. But “people I’ve talked to continue to not take Bernie that seriously.” “A big win in Iowa could change that,” Block added. An Iowa victory could trigger what Wall Street “Bond King” Jeffrey Gundlach labeled a Sanders “scare,” warning investors earlier this month that the biggest risk to the markets in 2020 is the Vermont senator becoming “more believed in as a real force” that investors would have to take more seriously
If the stock market begins to waver out of fear of a Sanders presidency, will it dent Trump’s ability to run on a strong economy?