U.S. equities advanced on Wednesday as Moderna’s shares surged 150% following positive trial results for its personalized melanoma vaccine, Intismeran Autogene, developed in partnership with Merck & Co. The vaccine, when combined with Merck’s Keytruda, reduced melanoma recurrence rates more effectively than Keytruda alone, marking a potential milestone for mRNA-based therapies. Merck’s shares rose 10%, while Biontech gained over 20% in sympathy.
The Dow Jones Industrial Average climbed 0.6% to 53,681 points, the S&P 500 added 0.4% to 7,748, and the tech-heavy Nasdaq 100 edged up 0.2% to 29,552. Tech stocks initially lagged but recovered later in the session. The broader market received support from the U.S. Treasury’s announcement to expand bond buybacks, which helped push 30-year Treasury yields lower after a prior surge had unsettled investors.
The Swiss Market Index (SMI) also gained ground, with Geberit leading gains among Swiss equities. The Swiss pharma sector followed Moderna’s rally, with Lonza up 2.6%, Roche 1.6%, Novartis 1.2%, and Skan 5.4%. European peers Novo Nordisk and AstraZeneca also advanced 1.5% and 2.4%, respectively.
Corporate earnings provided mixed signals. Estee Lauder surged 16% after reporting a 5% organic revenue increase for Q4 and lifting its 2027 adjusted operating margin target to 13.1% from 12.75%. The company also confirmed a 4% long-term organic revenue growth outlook. Lowe’s shares fell 4% despite a Q2 revenue of $25.96 billion, as the retailer cut its full-year comparable sales growth forecast to zero from up to 2% and trimmed its adjusted EPS guidance to $12.25. Home Depot, which reported stronger-than-expected Q2 results on Tuesday, rose 3%.
The U.S. Treasury’s net interest payments reached 3.3% of GDP in 2026, the highest level since records began, according to Barchart data. The figure has climbed steadily from 1.3% in 2021, surpassing previous peaks in the late 1980s and early 1990s. The surge reflects rising debt servicing costs amid higher interest rates and elevated federal borrowing.
Semiconductor stocks were volatile after Marvell Technology and Alphabet announced an expanded chip development partnership, with Marvell up 7.6% on a potential $12.2 billion equity stake for Alphabet. Broadcom fell more than 5% as analysts warned the deal could pressure its competitive position. Analog Devices rose in pre-market trading after Goldman Sachs upgraded its outlook, while Target gained 5% on an upgraded full-year forecast.
