Wall Street rises as yields ease, Moderna lifts healthcare stocks

U.S. stock indexes turned higher on Wednesday as easing government bond yields supported risk appetite, with Moderna delivering the day’s standout rally in healthcare after its cancer therapy with Merck showed a late-stage trial benefit. The move came even as minutes from the Federal Reserve’s July meeting signaled ongoing inflation concerns and the possibility of further rate hikes if inflation doesn’t slow toward the 2% target. Earlier, the Treasury announced it would double the size of its liquidity-support buybacks for longer-dated bonds, helping to stabilize bond markets and buoy equities. Moderna’s surge lifted its peers in biotech, with Merck, BioNTech, and Novavax also posting gains, while the broader technology sector remained mixed as investors weighed higher rates against AI-related demand. Analysts noted that higher rates could impact long-term growth pricing, but government support and favorable funding conditions helped sustain the rally for risk assets. Overall, the session reflected a cautious optimism driven by healthcare gains and liquidity measures, even as inflation and debt concerns linger.