Moderna Soars 96%, Dow and S&P 500 Futures Rise Amid Treasury Yield Drop

US stocks started Wednesday, August 19, on a positive note after the US Treasury Department announced plans to increase buybacks of longer-dated government debt. This move sent Treasury yields sharply lower, providing some relief to equity markets.

The Dow Jones Industrial Average rose about 230 points, or 0.4%, at the open, while the S&P 500 and Nasdaq Composite each gained 0.4%. The Treasury said it would at least double the size of its government debt repurchases, targeting bonds with maturities of 10 to 30 years.

The strong gains in Moderna shares, up 96%, after a late-stage trial of an experimental melanoma vaccine developed with Merck reported positive results, provided a boost to sentiment. Merck shares also gained 7%. The move eased some pressure on equity markets.