U.S. equities showed divergent moves on Wednesday as biotech stocks led gains following breakthrough cancer vaccine data, while tech shares weighed on major indexes.
The Dow Jones Industrial Average advanced 0.55% to 53,635 points, while the tech-focused Nasdaq 100 slipped 0.23% to 29,424. The broader S&P 500 rose 0.43% to 7,724. The mixed performance reflected sector-specific catalysts, with biotechnology and select consumer names outperforming, while semiconductor stocks lagged.
Moderna’s shares surged more than 150% after the company and Merck & Co reported that their personalized mRNA-based melanoma vaccine, Intismeran Autogene, combined with Merck’s Keytruda, significantly reduced recurrence rates in a late-stage trial. The trial results mark a potential milestone for mRNA therapies beyond infectious diseases. Merck’s stock climbed 10% to record highs, while BioNTech’s shares jumped over 20% in sympathy.
Semiconductor stocks declined after Marvell Technology and Alphabet announced an expanded chip development partnership. The deal includes an option for Alphabet to purchase up to $12.2 billion in Marvell shares, which rose 7.6%. Alphabet’s stock slipped slightly. Analysts noted the collaboration could pressure rival Broadcom, whose shares fell more than 5%. Other chipmakers also retreated.
In individual movers, Estee Lauder shares jumped over 16% following earnings, while Lowe’s gained more than 4% despite a lowered outlook. Home Depot rose 3% after minimal movement the prior day, and Target advanced 5% on an upgraded forecast. The Treasury’s announcement of expanded bond buybacks helped ease long-end yields, which had risen the previous session and weighed on equities.
The divergent performance underscored the market’s sensitivity to sector-specific developments, with biotech and select consumer names driving gains, while semiconductor and tech stocks faced headwinds.
