Stock market today: Dow, S&P 500, Nasdaq snap 3-day losing streak as bonds rally, Moderna skyrockets
US stocks rose on Wednesday, snapping a three-day losing streak, after the US Treasury Department said it would increase its buybacks of long-dated government debt, leading yields to pull back sharply.
The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) both gained 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) also roughly put on 0.2%.
In individual stocks, Moderna (MRNA) shares surged 176% after the company reported positive results from its late-stage trial of a melanoma vaccine developed with Merck (MRK).
Stocks gained momentum after Treasury yields eased from their highest levels in years. Bond prices, which move inversely to yields, rallied after the US Treasury Department said it would increase buybacks of long-dated government debt “by at least double” for securities from the 10-year to 30-year sector.
The 10-year yield (^TNX) fell by 5 basis points to 4.65%, while the 30-year yield (^TYX) declined by 9 basis points to 5.19% after hitting its highest level since 2007 earlier this week.
Investors also watched the trade front after Trump posted on Truth Social late Tuesday night that he paused the 50% Canadian tariffs for three days “based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!”
The announcement came after 11th-hour talks between Trump officials and Canadian Prime Minister Mark Carney’s team. While experts have said the tariffs would have had limited economic ramifications, they represent a strong signal of upcoming negotiations for the US-Mexico-Canada Trade Agreement (USMCA).
Fed meeting minutes released on Wednesday afternoon, meanwhile, showed several Federal Open Market Committee members favored raising interest rates at the central bank’s policy meeting last month and said that raising rates may be necessary if inflation doesn’t come down soon.
