U.S. health-care shares have extended their 2025 slide, pushing the sector’s performance to a record low relative to the broader equity market. Chart data show the Health Care Select Sector SPDR ETF’s ratio to the S&P 500 falling to fresh all-time lows on 8 August, reversing the high watermark reached in December 2022. The retreat has been attributed in part to the Trump administration’s intensifying efforts to rein in drug prices, along with talk of imminent tariffs on imported pharmaceuticals. Investors say the policy overhang is weighing on both insurers and drugmakers. Some portfolio managers are starting to view the pull-back as an opportunity. UnitedHealth Group, the sector’s largest constituent, changed hands at roughly $244 on Thursday—about 32 percent below the $357 average price target set by 51 sell-side analysts. Technical traders note the stock has so far held support around $240. Even so, broader sector valuations continue to compress, and strategists caution that health-care equities may remain volatile until there is greater clarity on the administration’s drug-pricing agenda.