Not every sector is feeling the benefits of the Fed rate cut. Pharmaceutical companies, often a safe haven in a troubled market, are moving to the downside during today's massive market rally.
Pharmaceuticals are often a place where people hide when the markets are nasty.
But when the tables turn and the markets head uphill, funds flow out of the drug manufacturers and into the more Fed-positive sectors, such as financials, tech and cyclicals. You don't need them as as much of a safe have as before. The pharmaceutical sector has been on a pretty steady rise since the end of March, as have other sectors, such as the financials. But should the market continue on an upswing, traders think that the drugs sector will continue to fall. People felt like there was a possibility of weakness in the dollar and other problems that they could face in their sales overseas, so this was a good opportunity to get into other areas.