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S&P 500 ends three-day slide as long-end Treasury yields drop

The rebound was bolstered by a surge in healthcare stocks, with Moderna and Merck jumping after announcing successful skin cancer vaccine trial results.

Reported · Written up by our desk · Indices

Deutsche Bank strategists said equities staged a rebound after a sharp drop in long-end U.S. Treasury yields helped the S&P 500 end a three-day losing streak. In their note, they cited a move higher in S&P 500 futures following a U.S. Treasury announcement.

The turnaround was reinforced by gains in healthcare, with Moderna rising 176.9% and Merck & Co. up 12.6% after they announced successful trial results for a skin cancer vaccine. The healthcare sector added 3.5% for its best day since April 2025, while semiconductors saw renewed weakness that was offset by the rally elsewhere.

The positive tone extended into Asian trading, despite more subdued performance in Europe. FXStreet said the KOSPI jumped 6.3%, while the Nikkei rose 1.2%, the Hang Seng gained 1.1%, the Shanghai Composite added 0.3%, and the CSI 300 inched up 0.2%. In Europe, the STOXX 600 fell 0.1% as it posted a sixth consecutive decline, the first time since 2023 that it has reached that streak.

Deutsche Bank also linked part of the divergence across regions to differing drivers, noting Europe was more exposed to strength in energy prices and did not benefit as directly from the U.S. Treasury-driven yield move. The firm pointed to the market reaction to Treasury developments as a key factor behind the improved performance over the prior 24 hours.

Latest closeS&P 500 7,785.76 ▼0.2%|Nikkei 225 68,308.59 ▲1.2%|Hang Seng 25,396.51 ▼0.2%

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