Treasury Buybacks Boost Tech Stocks as Chipmakers and Moderna Lead the Way

The US Treasury's bond buyback program is providing relief to the technology sector by lowering long-term yields, making future profits more valuable in present-day terms.

This has led to a rebound in semiconductor stocks, with SK Hynix and Samsung rising sharply. However, the sector still needs confirmation from U.S. chip stocks such as Sandisk, Micron, Nvidia, and Broadcom.

Moderna's 177% surge is attributed to new clinical information on its mRNA treatment for melanoma, rather than a sector rebound. This re-rating is significant, but investors should remain cautious, assessing the complete Phase 3 data, regulatory discussions, approval timing, manufacturing costs, and pricing.

The crypto market is also showing signs of broadening participation, with Ethereum's eight-hour breakout suggesting that investors are becoming willing to take risk across more of the market. However, traders should be aware of company-specific risks in crypto-linked stocks such as Strategy and Coinbase.