Stock market today: S&P 500 falls as rising Treasury yields blunt tech
Kenvue (NYSE:KVUE) shares are experiencing significant pressure in premarket trading, falling 6.05% to $17.24 as of 7:44:48 AM EDT on Monday, September 22, 2025. The decline follows reports that the Trump administration plans to announce a potential link between Tylenol use during pregnancy and autism risk. This development has reignited concerns about one of Kenvue’s flagship products, as Tylenol is a major revenue driver for the consumer health company. The stock has already been volatile over the past month, dropping approximately 15% amid ongoing speculation about potential regulatory action or consumer backlash against acetaminophen products.
KVUE: Trump Administration Fuels New Tylenol Safety Concerns
The Washington Post reported that the Trump administration plans to announce on Monday a possible connection between Tylenol use during pregnancy and autism spectrum disorder. Federal health officials are expected to caution women against taking Tylenol early in pregnancy unless they have a fever, marking a significant shift in guidance for the widely-used pain reliever. The administration will also promote leucovorin, a form of folate typically used alongside cancer treatments, as a potential autism therapy.
Trump has described this upcoming announcement as “one of the most important things” his administration will do, telling audiences at a recent memorial that “I think we found an answer to autism.” Health Secretary Robert F. Kennedy Jr., who has claimed the U.S. is experiencing an “autism epidemic” fueled by “environmental toxins,” is reportedly behind the push to establish this connection. The move represents a dramatic escalation in the ongoing scrutiny of acetaminophen safety during pregnancy.
This isn’t the first time Kenvue has faced pressure over Tylenol’s safety profile. Earlier this month, shares fell over 13% to a 52-week low after initial reports that Kennedy planned to release a report suggesting the Tylenol-autism connection. Interim CEO Kirk Perry subsequently met with Kennedy, requesting that Tylenol be exempted from the report, which provided some temporary relief to the stock price.
Market Reaction Highlights Investor Concerns Over Tylenol Sales
Kenvue, which was spun off from Johnson & Johnson (NYSE:JNJ) in 2023, operates as a consumer health company with a market capitalization of $35.2 billion. The company has maintained that “there is no causal link between acetaminophen use during pregnancy and autism,” with research showing no credible connection between the two. However, the stock’s performance reflects investor concerns about potential regulatory challenges, litigation risks, and consumer sentiment shifts that could impact Tylenol sales significantly.
The company’s financial metrics show a trailing P/E ratio of 24.45 and a forward P/E of 16.56, with analyst price targets ranging from $19.00 to $26.00, compared to the current premarket price of $17.24. Kenvue pays a forward dividend yield of 4.53%, making it attractive to income investors, but the ongoing controversy threatens to overshadow the company’s dividend sustainability. The stock has underperformed significantly, with year-to-date returns of -11.65% compared to the S&P 500’s +13.31% gain.
Any official government announcement linking Tylenol to autism could trigger a cascade of negative consequences for Kenvue, including potential lawsuits, stricter regulations, and decreased consumer confidence in one of its most important product lines. Investors are closely monitoring how the company responds to these developments and whether management can effectively defend the product’s safety profile while maintaining market share in the competitive pain relief segment.
***
Looking to start your trading day ahead of the curve?
Get up to speed before the bell with Bull Whisper—a sharp, daily premarket newsletter packed with key news, market-moving updates, and actionable insights for traders.
Start your day with an edge. Subscribe to Bull Whisper using this link.