US Stocks Bounce Back as Bond Yields Ease Amid Corporate Updates
US stocks rebounded from their previous session's slump on Wednesday as government bond yields eased and investors digested corporate updates. The tech-led selloff in Tuesday's market was reversed, with major technology stocks also bouncing back.
The 30-year Treasury yield fell to its lowest level since 2007 after the US Treasury announced plans to double its liquidity-support buybacks of longer-dated bonds. This move improved investors' appetite for risk and helped ease concerns about swelling government debt and geopolitical tensions.
Major biotechnology stocks, including Moderna and BioNTech, rose significantly after positive trial results were released. Moderna's shares more than doubled, while Merck climbed 9.6% and boosted the blue-chip Dow.
The S&P 500 healthcare sector advanced 2.7% to a record, leading gains across the benchmark index. Advancing stocks outnumbered declining issues by a 3.97-to-1 ratio on the NYSE and a 2.35-to-1 ratio on the Nasdaq, while the S&P 500 registered eight new 52-week highs and no new lows.