Investing in healthcare the healthcare sector’s market cap

The healthcare sector’s market cap reached $6.2 trillion in late May 2024, driven by M&A activity, including large-cap acquisitions targeting surgical robotics specialists. Investment banks forecast deal-making will persist into H2, creating window opportunities for equity gains. Shares of the pharmaceutical giant have been in the red for three consecutive years. At Morgan Stanley, we focus the expertise of the entire firm—our advice, data, strategies and insights—on creating solutions for our clients, large and small. Investing in healthcare stocks has gained momentum in Q2 2024 as the S&P 500 Health Care sector outperformed the broader market with a 5.2% monthly gain. Analysts cite increased demand for AI-driven diagnostics and biotech innovation as catalysts, with Pfizer and Moderna both showing higher-than-expected quarterly revenues.