Key Highlights

  • The S&P 500 rose 0.21% to close at 7,707.98, snapping a three-day losing streak, as the 30-year Treasury Yield fell more than 10 basis points to 5.184%.
  • Moderna shares soared roughly 177% for their best trading day on record after an experimental cancer Vaccine developed with Merck showed success in a late-stage trial.
  • Marvell Technology shares gained almost 10% after announcing an expanded AI chip Partnership with Google that includes a Warrant for Google to buy up to $12.2 billion in Marvell shares.
  • Broadcom and Advanced Micro Devices both declined more than 4% after a report showed OpenAI's second-quarter Revenue growth trailed expectations.

Stocks Rebound as Treasury Action Pulls Yields Lower

The S&P 500 rose 0.21% to close at 7,707.98 on Wednesday, snapping a three-day losing streak, while the Nasdaq Composite gained 0.16% and the Dow Jones Industrial Average added 0.22% to settle at 53,463.05. Stocks rallied after the Treasury Department said it would at least double the size of its buyback operations for longer-term government debt, targeting the 10- to 30-year portion of the market. The 30-year Treasury yield, which had touched a fresh 19-year high above 5.33% in the prior session, declined more than 10 basis points to 5.184%, while the 10-year yield dropped more than 6 basis points to 4.637%.

Rate-sensitive stocks including Lowe's and Home Depot (NYSE:HD) each gained around 2% following the yield decline. "Value names, for example, are doing really well today, and that tells you that the economy and the corporate Earnings cycle are still very strong," said one head of US equities strategy, who noted a continued tension between solid fundamentals and higher Capital costs.

Moderna and Marvell Lead Individual Stock Gains

Moderna (NASDAQ:MRNA) shares soared roughly 177% for their best trading day on record after an experimental skin cancer vaccine developed with Merck (NYSE:MRK) showed success in a late-stage clinical trial, with Merck shares also jumping more than 12% to support the broader market. Marvell Technology (NASDAQ:MRVL) shares gained almost 10% after the company announced an expanded partnership with Google (NASDAQ:GOOGL) related to its tensor processing units, including a warrant allowing Google to purchase up to $12.2 billion worth of Marvell stock.

Other technology stocks slid after a report indicated OpenAI's second-quarter revenue grew just 18% between the first and second quarter, disappointing investors even as losses widened. Broadcom (NASDAQ:AVGO) declined more than 4% and Advanced Micro Devices (NASDAQ:AMD) shed nearly 4% on the news.

Global Yield Pressures Set Backdrop for Wednesday's Rebound

Wednesday's gains followed a losing session Tuesday, when major indexes fell as sovereign bond yields climbed to multiyear highs globally. Along with the 30-year Treasury's fresh high, Japan's 10-year Bond Yield reached its highest level in three decades, France's 30-year bond yield hit its highest point since 2008, and Germany's 30-year bund yield reached its highest level since 2011.

Minutes from the Federal Reserve's July meeting, released Wednesday, showed three officials had dissented in favor of raising rates, with "many" officials seeing the potential need for higher rates should Inflation Fail to ease further.