US Stocks-Wall St recovers as yields ease; Moderna lifts healthcare stocks

Moderna's MRNA.O shares more than doubled after its personalized mRNA cancer therapy developed with Merck MRK.N cut the risk of melanoma recurrence and spread in a late-stage trial. Merck MRK.N jumped 11.2% and was the biggest boost on the blue-chip Dow. Biotech peers also gained. Novavax NVAX.O was up 6% while U.S.-listed shares of BioNTech BNTX.O rallied 21%. The S&P 500 healthcare sector .SPXHC rose 2.9% to hit a record high, providing the biggest support to the benchmark index. The main U.S. indexes rebounded on Wednesday after a steep tech selloff in the previous session as easing government bond yields boosted risk appetite, while markets assessed a flood of positive corporate updates including from vaccine-maker Moderna. At 12:18 p.m. ET, the Dow Jones Industrial Average .DJI rose 218.24 points, or 0.41%, to 53,564.38, the S&P 500 .SPX gained 45.89 points, or 0.60%, to 7,737.65, and the Nasdaq Composite .IXIC was up 156.02 points, or 0.59%, to 26,445.73. The yield on the 30-year Treasury bond US30YT=RR retreated from its highest level since 2007 after the U.S. Treasury announced it would double the size of liquidity support buyback operations for longer-dated bonds. It was last at 5.203%. Concerns over ballooning government debt and rising inflation pushed global bond yields to multi-decade highs on Tuesday, hitting risk assets, especially high-flying chip stocks that have taken U.S. markets to record highs this year. "Inflation does remain a concern and elevated oil prices are contributing to that. If the Federal Reserve is not going to do anything about it, the bond market will," said Sam Stovall, chief investment strategist at CFRA Research. Information technology stocks on the S&P 500 .SPLRCT were flat. Chipmaker Broadcom AVGO.O lost 4% after Marvell Technologies MRVL.O issued Alphabet's Google GOOGL.O a warrant to buy a stake worth about $12.18 billion. Marvell surged 9.8%, bucking the decline in chipmakers. The broader semiconductor index .SOX shed 1.3%. "Most tech companies are priced mainly on forward earnings expectations, and when interest rates creep up, those expectations are worth less and the stocks are worth less," said Robert Pavlik, senior portfolio manager at Dakota Wealth. In earnings, Target TGT.N was up 5% after raising its annual sales forecast, while Lowe's LOW.N gained 2.4% despite trimming its annual sales growth forecast. Estee Lauder EL.N jumped more than 16.7% after the cosmetics maker forecast annual profit above Wall Street estimates. Meanwhile, U.S. President Donald Trump said no talks were [taking place with Iran](V) and insisted the Strait of Hormuz was open, contradicting Iran's assertion that the strait remained shut to shipping. Brent crude futures LCOc1 added 1% to hit near three-week highs. Minutes from the U.S. Federal Reserve's July meeting later in the day will be parsed for a clearer picture of the central bank's policy outlook. Traders currently see at least one 25-basis-point rate hike from the Fed by the end of 2026, according to data compiled by LSEG. The odds of a hike as soon as September, however, have decreased significantly following last week's tame inflation data. Advancing issues outnumbered decliners by a 2.42-to-1 ratio on the NYSE and by a 1.74-to-1 ratio on the Nasdaq. The S&P 500 posted 18 new 52-week highs and no new lows, while the Nasdaq Composite recorded 94 new highs and 66 new lows.

US Stocks-Wall St recovers as yields ease; Moderna lifts healthcare stocks

Moderna drives healthcare stocks higher

Wall Street rebounds as bond yields ease

Mixed moves in tech, retail and other sectors

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