Treasury Intervention Sparks Stock Market Rally Amid Bitcoin Breakthrough

The US Treasury Department stepped in to stabilize markets by announcing measures to intervene, leading to a stock market rally. The Dow Jones Industrial Average rose 0.22% to 53,463.05, while the Nasdaq Composite gained 0.16% to 26,331.09. This marks a reversal of their three-day losing streak.

Moderna's (MRNA) cancer vaccine made headlines with its successful Phase 3 trial, causing its stock to surge 180%. Merck (MRK) followed suit, rising nearly 13%, leading the Dow Jones Industrial Average. Most tech stocks rebounded, but Nvidia (NVDA) fell about 1%.

The chip sector faced pressure overall, with the Philadelphia Semiconductor Index (SOX) dropping more than 2%. The yield on the 30-year US Treasury note briefly plummeted 10 basis points following the Treasury Department's intervention. Bitcoin (BTC) broke $70,000, and Ethereum (ETH) rose as much as 10%.

The US Treasury doubled the liquidity repurchase limit for 10- to 30-year Treasury bonds to at least $4 billion per transaction, signaling policy intervention and sparking discussions about a Treasury-led version of yield curve control (YCC).