Bloodbath Signals Biotech Bubble Bursting?

This episode of The Motley Fool's Market Checkup drills down on the hottest headlines and biggest market movers in the health-care sector. 

In this video, health-care analysts David Williamson and Max Macaluso discuss Washington, D.C.'s impact on health-care stocks. This time, it isn't the Obamacare or the ongoing government shutdown but the threat of breaching the debt ceiling that has investors spooked for a second straight day.

Shares of the Nasdaq Biotechnology index fell again, adding another 2% decline to yesterday's sell-off while the S&P Biotech index plunged an additional 4%, far underperforming the broader market.

While the carnage wasn't as universal as yesterday's bloodbath, we still saw a a wide swath of popular biotech stocks sharply decline. During turbulent times, investors often take their money out of volatile small-cap stocks, especially ones that have seen such strong performance over the last 12 months.

Watch and find out which stocks were hit the hardest and whether the biotech bubble has burst.

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