US Stock Market Rises on Easing Bond Yields and Moderna Surge

The US stock market indexes closed higher on Aug 19 as easing government bond yields boosted risk appetites. The yield on the 30-year Treasury bond, which hit its highest level since 2007 a day earlier, fell along with the 10-year Treasury yield after the US Treasury announced it would double the size of liquidity support buyback operations for longer-dated bonds.

Celebrity investor and chief market strategist at BMO Private Wealth Carol Schleif noted that riskier assets had sold off in recent days as bond yields rose, but were now 'trying to hang on to the lifeline' provided by Treasury Secretary's move. However, Jim Baird, chief investment officer at Plante Moran Financial Advisors, said investors likely took some profits after the initial rally and warned that 'the longer-term issue of higher rates is not off the table.'

Moderna shares surged almost 177 per cent, leading S&P 500 gainers in a record rally for the company. Its personalised mRNA cancer therapy developed with Merck cut the risk of melanoma recurrence and spread in a late-stage trial.