Dow Jones gains 119 points as healthcare stocks rally

Thansettakij•Economy•6d ago

Reader Briefing

The Dow Jones Industrial Average closed higher on Wednesday, August 19, driven by healthcare stock gains and a drop in US Treasury yields.

•The Dow Jones closed up 119 points on Wednesday, August 19.
•The US Treasury announced an increase in the buyback size of government bonds.
•Moderna shares surged nearly 177% following positive results for an mRNA cancer treatment developed with Merck.
•The US Federal Reserve indicated that interest rates may need to rise if inflation does not reach the 2% target.

•The US Treasury announced it will increase the maximum buyback limit for bonds with maturities of 10-20 and 20-30 years from 2 billion dollars to at least 4 billion dollars.
•The US Treasury's bond buyback changes will take effect from September 9 until November 4.
•US Treasury yields dropped, with the 10-year yield falling to 4.647% and the 30-year yield falling to 5.196% following the buyback announcement.
•BMO Private Wealth analysts stated investors were relieved by US government support, as previous yield spikes raised concerns over borrowing costs for AI technology firms.
•Moderna shares rose nearly 177% after reporting that an mRNA cancer treatment developed with Merck reduced the risk of recurrence and spread of melanoma.
•The rally in Moderna shares supported other healthcare stocks, with Novavax rising 10.8% and BioNTech rising 22%.
•Marvell Technologies announced it will help develop custom chips for Google and offered Google the right to buy Marvell shares worth up to 12.2 billion dollars.
•The US Federal Reserve's July meeting minutes indicated officials are more concerned about inflation and may raise interest rates if inflation does not drop to the 2% target.

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Dow Jones(ดาวโจนส์)ℹ️

A stock market index that closed up 119 points.

US Treasury(กระทรวงการคลังสหรัฐฯ)ℹ️

The government body that announced an increase in the buyback size of government bonds.

Modernaℹ️

A major vaccine manufacturer whose shares surged nearly 177% due to mRNA cancer treatment results.

BMO Private Wealth

An entity whose analysts commented on investor relief following US government measures.

S&P 500(S&P500)ℹ️

A stock index where healthcare stocks rose 3.52%.

Merck

A company that co-developed an mRNA cancer treatment with Moderna.

Novavaxℹ️

A healthcare company whose shares rose 10.8%.

BioNTechℹ️

A company listed on the US stock market whose shares rose 22%.

Marvell Technologies

A company that will develop custom chips for Google.

A company for which Marvell Technologies is developing custom chips.

Alphabetℹ️

The parent company of Google.

Target

A retail company that increased its annual sales forecast.

Lowe's(Lowe’s)ℹ️

A retail company that lowered its annual sales forecast.

Federal Reserve(ธนาคารกลางสหรัฐฯ)ℹ️

The US central bank that indicated a need to raise interest rates if inflation does not hit 2%.

FED(เฟด)

The abbreviated name for the US Federal Reserve.

New York Stock Exchange(ตลาดหุ้นนิวยอร์ก)ℹ️

The location where the Dow Jones index closed positive.