Finance

Government bond yields plunged significantly following the Treasury Department's decision to more than double its buyback operations for longer-term notes and bonds. Starting in early September, the maximum size per operation will expand from $2 billion to $4 billion to inject liquidity into the debt market. This announcement caused the 30-year bond yield to slide over 10 basis points, recording its largest single-day drop in nearly two years.

Prominent corporate earnings provided a solid cushion for the broader market as major retailers reported stronger-than-expected quarterly results. Target advanced 4.3% behind a healthy jump in same-store sales, while Lowe's climbed 2% on better-than-anticipated spring profits. These positive results helped offset lingering performance drags stemming from overextended mega-cap tech and semiconductor equities.

Shares of Moderna soared more than 175% to easily lead the S&P 500 during Wednesday's trading session, reaching their highest value since 2023. The explosive rally was triggered by successful Phase 3 trial data evaluating its individualized neoantigen therapy combined with Merck's cancer treatment. Merck also benefited from the breakthrough medical news, with its own stock jumping roughly 13%.