SynopsisUS stock markets enjoyed a boost as easing bond yields and a spike in Moderna shares contributed to a favorable trading environment. Despite the Federal Reserve's minutes highlighting inflation concerns and discussions on rate hikes, investors remained optimistic.

The Treasury's announcement of liquidity support revitalized riskier assets, particularly in tech stocks, while the success of Moderna's cancer therapy trial uplifted the healthcare sector. TIL CreativesUS stock market.

S. stock market indexes closed modestly higher on Wednesday, as easing government bond yields boosted risk appetite while a dramatic rally in shares of vaccine-maker Moderna drove gains in the healthcare sector.

S. Federal Reserve's July meeting, which showed deepening concern about inflation with "several" policymakers ready to raise interest rates.

S. central ⁠bank's 2% ⁠target.

But a day after the yield on the 30-year Treasury bond hit its highest level since 2007, the yield fell on Wednesday along with the 10-year Treasury yield. S.

Treasury announced it would double the size of liquidity support buyback operations for longer-dated bonds." The risk-on trade is trying to hang on to the lifeline that Treasury Secretary Bessent sent," said Carol Schleif, chief market strategist at BMO Private Wealth, noting that riskier assets including high-profile technology stocks had sold off in recent days as bond yields rose.

Concerns over ballooning government debt and rising inflation had pushed global bond yields to multi-decade highs on Tuesday. However, equity indexes pared gains as the session wore on.

Jim Baird, chief ⁠investment officer at Plante Moran Financial Advisors, said that investors likely took some profits after the initial rally and he added that the morning's announcement "doesn't mean that the longer-term issue of higher rates is off the table." 09.

34. Moderna's shares surged more than after the company said its personalized mRNA cancer therapy developed with Merck cut the risk of melanoma recurrence and spread in a late-stage trial.

Merck shares also jumped and it was the biggest gainer in the blue-chip Dow. -listed shares of BioNTech.

The S&P 500 healthcare sector rallied sharply, hitting a record high and providing the biggest boost to the benchmark index from any of its 11 major industry sectors. The Nasdaq biotechnology index also jumped.