US Stocks Bounce Back Amid Easing Yields and Healthcare Sector Rally

The US stock market indexes closed modestly higher on Wednesday as government bond yields eased. This boost in risk appetites came after the US Treasury announced it would double the size of liquidity support buyback operations for longer-dated bonds, calming investors' concerns about ballooning government debt and rising inflation.

However, the relief was short-lived as equity indexes pared gains throughout the session. Investors likely took some profits after the initial rally, according to Jim Baird, chief investment officer at Plante Moran Financial Advisors.

The Dow Jones Industrial Average rose 119.65 points, or 0.22%, to 53,463.05, while the S&P 500 gained 16.22 points, or 0.21%, to 7,707.98 and the Nasdaq Composite gained 41.38 points, or 0.16%, to 26,331.09.

The healthcare sector led gains in the S&P 500 with a 3.5% increase after Moderna's shares surged almost 177% following an announcement that its personalized mRNA cancer therapy had cut the risk of melanoma recurrence and spread in a late-stage trial. Merck shares jumped 12.6%, making it the biggest percentage gainer in the blue-chip Dow.