Eleven stocks were on a high note on Tuesday, dominated by US pharmaceutical companies, as investors began loading portfolios with those that would benefit from the US government’s imposition of a 100-percent tariff on drug imports.
The stocks outperformed broader market optimism, with Wall Street’s main indices finishing in the green amid the typical quarterly window-dressing. The Dow Jones inched up by 0.18 percent, the S&P 500 increased by 0.41 percent, while the tech-heavy Nasdaq grew by 0.30 percent.
In this article, we focus on the 11 stocks that led the charge and break down the reasons behind their gains.
To come up with the list, we focused exclusively on mid-cap stocks with more than $2 billion in market capitalization and 5 million shares in trading volume.
Photo by Tima Miroshnichenko on Pexels
11. Avantor Inc. (NYSE:AVTR)
Avantor Inc. (NYSE:AVTR) saw its share prices grow by 5.41 percent on Tuesday to close at $12.48 apiece as investor funds poured into stocks of pharmaceutical companies a day ahead of the imposition of levies on imported drugs.
On September 25, President Donald Trump announced the imposition of 100 percent tariff on imported branded or patented pharmaceutical products beginning October 1, but those building a manufacturing plant in the US will be spared from such.
In line with the new policy, the US government has conducted a national security investigation to determine tariffs on pharmaceuticals.
Avantor Inc. (NYSE:AVTR)—a US-based biotechnology and pharmaceutical company—stands to benefit from the import levies as it would markedly raise the prices of imported brands and make domestic alternatives more affordable and attractive to customers.
10. GSK plc (NYSE:GSK)
Shares of GSK rallied for a third straight day on Tuesday to hit a new all-time high, as investors gobbled up shares in US-based pharmaceutical companies a day ahead of the official imposition of a hefty tariff on imported drugs.
During the session, GSK plc (NYSE:GSK) jumped to a new all-time high of $43.32 before giving up marginal gains to finish the day just up by 5.05 percent at $43.17 apiece.
While a London-based company, investors posted confidence on GSK plc (NYSE:GSK) following announcements that it would invest $30 billion in the US over the next five years.
Under President Donald Trump’s new tariff rules, imported drug products will be slapped as much as 100 percent levy, but those that will invest in manufacturing in the US could be exempted. The announcement sparked investor optimism that GSK plc (NYSE:GSK) will be spared from tariffs.
In other news, the company announced changes in its leadership following the resignation of Emma Walmsley as its chief executive officer. She will be replaced by incumbent chief commercial officer, Luke Miels, effective January 1, 2026.
“2026 is a pivotal year for GSK to define its path for the decade ahead, and I believe the right moment for new leadership,” Walmsley was quoted as saying in the company’s statement.
“Today, GSK is a biopharma innovator, with far stronger momentum and prospects than nine years ago,” she noted.
Hedge Fund Resource Center