Kenvue Shares Plunge 9.35% as HHS Autism Risk Claims Spark 623% Volume Surge, Ranking 27th in Liquidity

On September 5, 2025, Kenvue (KVUE) traded at a 9.35% decline to $18.24, with a daily trading volume of $2.51 billion—a 623.02% surge from the prior day, ranking 27th in market liquidity. The selloff intensified amid reports that the U.S. Department of Health and Human Services (HHS) plans to link prenatal use of acetaminophen (marketed as Tylenol) to autism and ADHD risks. This potential regulatory scrutiny has triggered bearish sentiment, with the stock hitting a one-year low and marking a year-to-date loss exceeding 17%.

Scientific and legal uncertainties further complicate Kenvue’s outlook. While the American College of Obstetricians and Gynecologists has previously deemed Tylenol safe for pregnancy, ongoing litigation and mixed research findings have created a reputational and financial risk. HHS Secretary Robert F. Kennedy Jr.’s advocacy for linking the drug to neurodevelopmental disorders has amplified market jitters. Analysts note that Kenvue’s Q2 revenue fell 4% year-over-year to $3.84 billion, reflecting potential demand erosion amid litigation risks. However, price targets suggest cautious optimism, with a $22.80 consensus implying a 25% upside from current levels.

The broader over-the-counter pharmaceutical sector faces ripple effects. If regulatory agencies impose stricter labeling or usage restrictions, Kenvue and its peers could face margin pressures. Recent policy shifts, including streamlined generic approvals and cost-reduction initiatives, may also impact pricing power. Despite these challenges, the global OTC market remains projected to grow at 5.7% annually through 2034, driven by innovation and digital integration. Kenvue’s strategic investments in AI-driven R&D and sustainable packaging align with long-term trends, though near-term volatility is expected.

To run this back-test accurately I need to pin down a few practical details about the strategy and the data universe. Please confirm (or adjust) the following so I can proceed: 1. Market universe • Do you mean all U.S. listed common stocks (NYSE + NASDAQ + AMEX) or a different universe? • If a different exchange set (e.g., only Shanghai, only HK, etc.) please specify. 2. Ranking logic & execution timing • I will rank stocks by the previous trading day’s dollar volume (shares × close price). • The portfolio will be formed at today’s open, held for one full trading session, and closed at the next day’s close (T + 1). (Using the previous day’s data avoids look-ahead bias. Let me know if you prefer close-to-close instead.) 3. Portfolio construction • Equal-weight across the 500 selected names each day. • No transaction-cost or slippage assumptions unless you ask for them. 4. Back-test window • 2022-01-01 through 2025-09-05 (today). 5. Risk-control rules • None by default. If you want stop-loss, take-profit, or max-holding-days limits, please specify. Once I have these parameters I’ll retrieve the necessary volume and price data, build the daily trading signals, and run the back-test. Let me know if all of the above looks correct or if you’d like any adjustments.