SPDR S&P Biotech ETF closed Monday at a five-year low

The SPDR S&P Biotech ETF XBI, -8.21% closed at a five-year low of $64.37 on Monday as U.S. stocks plunged on concerns about continued inflation and the threat of weaker growth. The last time the price for the biotech ETF was down this low was in December 2018. “A combination of clinical and regulatory setbacks, lack of M&A, and macro environment has created a downward spiral that appears to us to be an excessive overreaction to the 2020- to early-’21 ‘bubble,'” RBC Capital Markets analyst Brian Abraham told investors on Tuesday. The SPDR S&P Biotech ETF has tumbled 37.3% this year, while the broader S&P 500 SPX, -3.20% is down 16.2%.