In an unexpected twist, shares of Kenvue, the company behind Tylenol, saw a significant rebound just before the market opened, following controversial remarks made by former President Donald Trump. During a recent news conference, Trump made unfounded assertions linking Tylenol to vaccines and autism, advising expectant mothers to avoid the popular pain reliever.

Trump, reiterating his warning, stated, 'Don’t take Tylenol,' urging mothers to reconsider giving it to their infants. This statement sent shockwaves through the stock market, causing Kenvue's shares to plummet by 7.5% on Monday.

However, confident investors rallied back, pushing shares significantly up in premarket trading on Tuesday.

As the controversy unfolds, it's important to note that the claims made by Trump largely rely on previously established studies without introducing any new scientific evidence. The backdrop of this discussion features Health and Human Services Secretary Robert F. Kennedy Jr., a prominent vaccine skeptic, promoting the 'Make America Healthy Again' initiative, raising questions about potential links to autism.

Kenvue quickly refuted any connection between Tylenol and autism, emphasizing the risks pregnant women face if they avoid using the medication, including the dangers of untreated fevers or turning to less safe alternatives.

Interestingly, Kenvue, which emerged as a standalone entity from Johnson & Johnson in 2023, also produces other household staples like Band-Aids and Listerine.

Citi Investment Research’s analyst, Filippo Falorni, believes that while there may be limited risk of new lawsuits stemming from Trump's comments, the ongoing negative publicity could affect Tylenol's consumption overall. Historically, the company has encountered numerous lawsuits concerning Tylenol's alleged links to autism, most of which have been dismissed.

Despite the whirlwind of claims and market reactions, the analyst anticipates a positive trend for Kenvue's stock as Tuesday trading begins, reassured by the absence of fresh scientific evidence.'

As the situation develops, Kenvue's shares are set to take center stage, with investors keenly watching how this controversy impacts consumer perception.