Treasury Bond Buys Send US Stocks Higher Amid Slumping AI-Related Shares

US stocks ticked higher on Wednesday after the US Treasury Department announced plans to buy more government bonds, easing pressure on financial markets. The move was seen as a bid to provide liquidity support in longer-dated sectors.

The S&P 500 rose 0.3%, while the Dow Jones Industrial Average gained 65 points and the Nasdaq composite increased by 0.2%. Treasury yields fell, with the 10-year yield dipping to 4.65% from 4.71% late Tuesday.

Moderna's stock surged 89.5% after the company announced encouraging results for a cancer vaccine it co-developed with Merck. The vaccine showed better recurrence-free survival in melanoma patients compared to those receiving Keytruda alone.