After a bruising session on Monday, Kenvue Inc (NYSE:KVUE) shares staged a 6% rebound in premarket trade on Tuesday, clawing back much of the previous day’s 7.5% drop.
The rally came after President Donald Trump repeatedly told pregnant women to avoid Tylenol, reviving disputed claims of a link between the painkiller and autism.
The consumer health group, spun off from Johnson & Johnson in 2023, swiftly rejected any connection and warned that avoiding the drug during pregnancy could force women into riskier choices if they need relief from fever.
Tylenol, sold as acetaminophen in the US and paracetamol elsewhere, remains one of the company’s biggest brands alongside Band-Aids and Listerine.
Analysts downplayed the risk of fresh litigation, with Citi noting no new scientific evidence had emerged.
However, it cautioned that consumption could be dented by negative headlines. Most lawsuits over alleged links to autism have already been dismissed.
Ahead of the bell, the stock was marked just under a dollar higher at $17.96.