Kenvue stock climbs after Trump claims on Tylenol linked to autism

Shares of Kenvue Inc. rebounded in premarket trading Tuesday, a day after President Donald Trump promoted unproven and in some cases discredited links between Tylenol, vaccines and autism. The New Jersey-based consumer brands company, spun off from Johnson & Johnson in 2023, had fallen 7.5% during the previous session as investors weighed the potential impact of political statements on a popular over-the-counter drug. Early Tuesday, the stock recovered much of those losses as traders weighed the lack of new scientific evidence against ongoing public attention to the topic.

During a White House news conference Monday, Trump urged pregnant women not to take Tylenol, repeating the admonition around a dozen times, and told mothers not to give the drug to their infants. The remarks referenced what he described as links between Tylenol use and autism, though there is no established causal relationship supported by credible new evidence. The rhetoric arrived as Health and Human Services Secretary Robert F. Kennedy Jr., a vaccine skeptic, has been promoting the Make America Healthy Again movement that questions various potential autism causes.

Kenvue disputed any link between Tylenol and autism this week and emphasized that using acetaminophen as directed can be important for fever reduction in pregnancy and for short-term discomfort, while acknowledging that parents should always follow medical guidance. The company notes Tylenol is just one of several brands in its portfolio, which also includes Band-Aids and Listerine, products that have supported its spin-off from J&J and helped establish it as an independent consumer health player. The split, completed in 2023, was intended to unlock greater efficiency by separating the consumer brands from J&J’s pharmaceutical and medical-device businesses. Analysts have said the separation could help Kenvue pursue its own growth strategy, but the company has also faced hundreds of lawsuits over Tylenol’s alleged links to autism; most of those suits have been dismissed.

Analysts underscored that the latest comments did not introduce new science, but warned about potential reputational risk. Citi Investment Research analyst Filippo Falorni wrote that the probability of new lawsuits remains limited, yet “there could be risk to Tylenol consumption given the negative headlines.” Falorni and others noted that a broad consumer response to political claims about health products can affect demand even in the absence of new data.

The stock market has a track record of volatility around such episodes. Tylenol gained notoriety in the 1980s after seven people died in the Chicago area from taking cyanide-laced capsules, a crisis that prompted sweeping changes to OTC packaging and safety protocols. While the incidents from decades ago shaped industry standards and consumer protections, they also left a historical memory that traders watch whenever public figures weigh in on drug safety questions.

By Tuesday morning, Kenvue shares were up roughly 5% in premarket trading, signaling some investor confidence that there is no new scientific basis for broad changes in Tylenol usage. The company has reiterated that it will continue to rely on established labeling, regulatory guidance and clinical data to inform consumer decisions, and it emphasized the importance of making medical choices in consultation with healthcare professionals. As the political conversation continues to intersect with consumer goods, analysts expect market sentiment to remain sensitive to any follow-up statements or new data related to Tylenol and autism concerns.