U.S. equities slipped into negative territory on Wednesday as the Nasdaq Composite gave up early gains, falling 0.3% to 29,415, while the Dow Jones Industrial Average and S&P 500 rose 0.3% and 0.4%, respectively. The tech-heavy Nasdaq 100 ended at 29,720, up 0.5%.
The reversal came after Moderna’s shares surged 72% to $109.02, the highest level since July 2024, following positive late-stage trial results for its personalized mRNA cancer vaccine, Intismeran Autogene, in combination with Merck & Co’s immunotherapy Keytruda. The combination therapy reduced melanoma recurrence and spread more effectively than Keytruda alone, according to the companies. Merck’s shares advanced 5.5% in premarket trading, while BioNTech gained nearly 16%.
The biotech rally extended to European pharmaceuticals, with Roche up 1.6%, Novartis up 1.2%, and Lonza gaining 2.6%. Novo Nordisk and AstraZeneca also climbed 1.5% and 2.4%, respectively, as the sector benefited from Moderna’s momentum.
U.S. net interest payments reached 3.3% of gross domestic product in the latest data, the highest level since records began, according to Barchart data derived from Bloomberg and U.S. government figures. The ratio has climbed steeply from 1.3% in 2021, surpassing previous peaks in the late 1980s and early 1990s, when net interest costs hovered around 3% of GDP. After declining in the 2000s and 2010s, the metric has surged since 2020, reflecting higher borrowing costs amid rising debt levels.
In corporate earnings, Estée Lauder shares rose 15% after the cosmetics giant beat fourth-quarter expectations, reporting a 5% organic revenue increase—the fourth consecutive quarter of growth. The company raised its adjusted operating margin outlook for fiscal 2027 to 13.1% from 12.75%, while maintaining its organic revenue growth forecast of 4% on average. Growth is expected in fragrances, skincare, and makeup, with the latter poised for a rebound in 2024.
The Swiss Market Index (SMI) advanced 0.36% to 14,326, outperforming weak regional peers as defensive stocks countered losses in semiconductor shares. European natural gas prices also surged to €64.60 per megawatt-hour for the TTF front-month contract, the highest since mid-March, driven by geopolitical tensions linked to the Iran conflict, which had briefly pushed prices near €70 in late February.
In contrast, U.S. home improvement retailer Lowe’s saw its stock drop 3.7% in premarket trading after lowering its full-year organic sales growth guidance to flat from up to 2%, citing weaker demand for large renovations amid high mortgage rates and reduced home sales. The company also trimmed its adjusted earnings per share forecast to $12.25, below prior guidance. Second-quarter revenue missed estimates at $25.96 billion, while rival Home Depot reported better-than-expected results and reaffirmed its annual targets.
Analog Devices shares rose over 1% in premarket trading after Goldman Sachs upgraded the chipmaker’s outlook, citing solid quarterly results and a strong forward outlook.
