US equities opened higher on Wednesday, recovering from a technology-led selloff in the prior session, as a pullback in long-term Treasury yields provided some relief to risk assets. The Dow Jones Industrial Average advanced roughly 100 points, while the S&P 500 and the Nasdaq Composite gained 0.37% and 0.28%, respectively.
The decline in yields followed the US Treasury Department's announcement that it would at least double the size of its debt buyback operations, targeting securities in the 10- to 20-year and 20- to 30-year maturity segments. The 30-year Treasury yield, which had surged above 5.33% on Tuesday to a 19-year high, fell nearly 9 basis points to 5.196%. The 10-year yield slipped 6 basis points to 4.647%.
The move offered a reprieve after global bond yields reached multi-decade highs in the previous session, stoking concerns about inflation, government borrowing, and geopolitical tensions. Investors are closely monitoring these factors as they weigh the outlook for monetary policy and economic growth.
Moderna surges on melanoma vaccine trial results
Moderna was the standout performer, with shares soaring more than 91% after interim data showed its experimental cancer vaccine, developed in partnership with Merck's Keytruda, met both primary goals in a late-stage melanoma trial. Merck shares also climbed over 8%, while biotech peers Novavax and BioNTech gained 3.8% and 16.4%, respectively. The positive readout provided a boost to the broader healthcare and biotechnology sectors, diverting attention from the tech weakness that dominated Tuesday's trading.
In other corporate news, Marvell Technology jumped 10.67% after announcing an agreement with Google related to its tensor processing units. As part of the deal, Google received a warrant to purchase nearly 59 million Marvell shares, a stake potentially worth about $12.18 billion. Estée Lauder rose 15% after forecasting annual profit above Wall Street expectations, adding to the positive earnings momentum.
Retail earnings and Fed minutes in focus
Retail results also captured investor attention. Target edged 3.9% higher after raising its annual sales forecast, signaling continued progress in its turnaround efforts. Lowe's gained 1.46% despite saying it now expects no growth in annual comparable sales, as consumers remain cautious about discretionary spending. Walmart is scheduled to report quarterly results on Thursday, and its earnings will be a key indicator of US consumer health.
Later Wednesday, the Federal Reserve is set to release minutes from its July meeting. That gathering saw three officials dissent in favor of a rate hike, underscoring divisions within the central bank over the path of monetary policy. According to LSEG data, markets currently price in at least one 25-basis-point rate hike by the end of 2026, though expectations for a September move have diminished following softer inflation data.
Geopolitical risks remain a concern, with President Donald Trump stating that no talks are taking place with Iran and asserting that the Strait of Hormuz remains open, despite Iran's claims that the waterway is closed to shipping. Brent crude rose 0.2% to its highest level in three weeks, reflecting ongoing supply uncertainties.
As investors digest these developments, the interplay between bond yields, corporate earnings, and central bank policy will likely continue to drive market direction. For more on the recent yield-driven selloff, see our coverage of AI infrastructure stocks sliding and the Dow's earlier decline. Additionally, the Moderna rally highlights the potential of biotech innovation, while oil's rise adds to the complex macro picture.
This article is for informational purposes only and does not constitute financial advice.
