Stocks Rise on Lower Bond Yields as Moderna's Cancer Vaccine Trial Sparks Market Surge

Global stock markets gained support from the U.S. Treasury's expanded bond-buying program, with the Nasdaq 100 rebounding from a 1.5-week low. The 10-year U.S. Treasury yield fell to 4.64%, encouraging riskier assets. However, chipmakers and AI infrastructure stocks remained weak. Moderna's cancer vaccine trial results boosted its stock by over 120%. Additionally, a delayed U.S.-Canada trade agreement postponed tariffs for three days. Nigeria's disruption of Asian markets lifted crude oil prices, with September WTI reaching a 3-week high. The U.S. naval blockade on Iran's ports, following Iran's missile attacks and the UAE's economic sanctions, kept tensions elevated. The 30-year fixed mortgage rate remained unchanged at 6.77%.

Markets are shifting toward riskier assets following Moderna's breakthrough, but Nigeria's oil export disruption could reignite commodity price pressures. We await clearer signals from the ECB on its interest rate path.