US equities experienced a notable rebound as a sharp decline in long-end US Treasury yields helped the S&P 500 end a three-day losing streak, closing up by 0.21% [1]. The rally was primarily driven by the yield relief following a US Treasury announcement, which also pushed S&P 500 futures higher [1]. Healthcare stocks were a major contributor to the market's gains, with Moderna surging by 176.97% and Merck & Co. rising 12.60% after both companies announced successful trial results for a skin cancer vaccine. This propelled the S&P 500 healthcare sector to a 3.52% gain, marking its best day since April 2025 [1].
Despite the overall positive tone, the market's advance was tempered by renewed weakness in semiconductor stocks, as the Philadelphia Semiconductor Index (SOX) fell by 2.12% [1]. The positive sentiment extended into Asian markets, with the KOSPI jumping 6.25%, the Nikkei gaining 1.18%, the Hang Seng up 1.14%, the Shanghai Composite rising 0.28%, and the CSI 300 advancing 0.21% [1].
In contrast, European equities lagged behind their US counterparts, as they did not benefit directly from the US Treasury announcement and were more affected by rising energy prices. The STOXX 600 declined by 0.11%, marking its sixth consecutive loss—the longest losing streak since 2023 [1].
No forward-looking statements or analyst opinions beyond the Deutsche Bank strategists' commentary on the drivers of the rebound were provided in the source [1].
CONCLUSION
US equities rebounded on the back of falling Treasury yields and strong healthcare sector gains, particularly from Moderna and Merck. However, semiconductor weakness and lagging European markets highlighted ongoing sector and regional divergences. The overall market sentiment was positive, with notable strength in both US and Asian equities.