Moderna's stock experienced a dramatic increase of up to 100% in pre-market trading after its personalized cancer vaccine, developed in collaboration with Merck, showed promising results in a late-stage trial. This development is significant as it could enhance investor confidence in Moderna's future prospects and potentially lead to increased funding for further research and development.
Meanwhile, bond yields have been climbing globally, with the 30-year U.S. Treasury yield reaching record levels, which has implications for mortgage rates and consumer loans. This trend raises concerns about the U.S. government's nearly $40 billion debt and could lead to tighter scrutiny on capital expenditures, particularly in the AI sector.
The S&P 500 index has been under pressure, falling for three consecutive sessions due to these rising yields and increasing oil prices. In corporate news, Target reported a $752 million boost to its net earnings in the second quarter, attributed to tariff refunds, prompting the company to raise its full-year outlook.
Conversely, Lowe's reported a modest increase in earnings per share but provided a cautious outlook amid pressures in DIY spending, leading to a decline in its stock. Additionally, President Trump announced a temporary pause on proposed 50% tariffs on certain Canadian goods, which could have significantly impacted U.S. businesses reliant on these imports.
Lastly, American Airlines plans to reintroduce seatback screens to its narrow-body fleet by 2028, reversing its previous stance on the technology's cost-effectiveness. This move reflects advancements in technology and a shift in customer preferences