Biotech's Bubble Bursts
There's nothing new under the sun, but that doesn't mean it won't affect stock prices. Tuesday's joint statement by President Clinton and U.K. Prime Minister Tony Blair about democratizing gene-sequencing data was hardly shocking. But biotech stocks still gasped, then practically fainted dead away, some
plunging more than 25%. What started with genomics extended to the sector, and while many experts were pointing out the lack of "new" in the news, the
stampede was on. The Nasdaq and Amex biotech indices each dropped 13%.
Even companies that would benefit from the access to the gene data, suffered, indicating just how "me too" the selloff was. Follow that Thursday with the Dow's
499.19-point rally based on similarly elusive factors and you had a market as capricious as child.
Friday wrapped up with the Nasdaq back in its usual form, cruising steadily upward and closing at 4582.68. So what else is new?
Kayte VanScoy, special to the TheStreet.com, contributed to this article.
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