Stock Market Today: Pfizer Rallies on Trump Drug Pricing Deal and U.S. Investment Pledge

Pfizer Inc (NYSE: PFE) closed at $25.48, rising 6.83%. Volume soared to over 153 million shares, nearly 3.5 times its three-month average of 43.3 million.

Indexes advanced modestly, led by healthcare and industrial strength. The S&P 500 (SNPINDEX: ^GSPC) gained 0.41% to 6,688.46, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) ticked up 0.30% to 22,660.01, as health and industrial sectors led gains.

Among large pharma peers, Johnson & Johnson (NYSE: JNJ) ended at $185.42, up 2.09%, while Eli Lilly and Co (NYSE: LLY) finished at $763.00, up 5.02%. Both stocks showed strength on sector momentum tied to the policy move.

Pfizer's rally followed news of a high-profile agreement with the Trump administration. The company will reduce many drug prices, particularly in Medicaid, by matching the lowest prices abroad and launching new medicines at parity. In return, Pfizer secured a three-year exemption from planned import tariffs and committed to invest about $70 billion in U.S. manufacturing. The deal also ties Pfizer to TrumpRx, a newly announced direct-to-consumer drug sales platform. While the near-term boost in sentiment was clear, the long-term financial impact will depend on how price concessions balance against expanded production and potential volume growth.

Market data sourced from Google Finance and Yahoo! Finance on Tuesday, Sept. 30, 2025.

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Daily Stock News has no position in any of the stocks mentioned. This article was generated with GPT-5, OpenAI's large-scale language generation model and has been reviewed by The Motley Fool's AI quality control systems. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.