Finance

Long-end government bond yields pulled back sharply from multi-year highs after the federal government doubled liquidity support operations for 10- to 30-year notes. The 30-year Treasury yield tumbled nearly 10 basis points to roughly 5.18% just a day after touching its highest level since 2007. This aggressive debt-management shift cut international investor returns, pressuring the greenback and dragging the WSJ Dollar Index down to its lowest close since mid-May.

Minutes from the Federal Reserve's July monetary policy meeting revealed that central bankers remain increasingly worried about stubborn inflation. The report showed that several policymakers were already prepared to lift interest rates at that time. Many officials noted that a continuation of elevated inflation would require additional tightening, signaling that a path of higher-for-longer borrowing costs could persist if consumer prices fail to steadily head back toward the 2% target.

The S&P 500 healthcare sector recorded its largest single-day percentage gain in over a year, heavily anchored by a dramatic stock rally. Shares of vaccine manufacturer Moderna skyrocketed over 170% to settle at their highest trading mark since 2023. This stellar healthcare momentum, coupled with a 12.6% advance for Merck & Co, provided crucial upside support that ultimately offset persistent hardware and semiconductor headwinds within the broader technology sector.