U.S. Treasury “rescue” efforts; U.S. stocks halt their three-day losing streak. On August 19, the U.S. Department of the Treasury announced that it will expand the size of its long-term Treasury repurchase program by at least one additional hundred percent to $4 billion, covering 10- to 30-year bonds, with the aim of easing selling pressure in the bond market. After the news broke, U.S. Treasury yields fell, the U.S. Dollar Index dropped by more than 1% to a new near three-month low, and all three major U.S. stock indexes closed higher together. The same day, Moderna and Merck (MSD) jointly announced that their Phase 3 clinical trial of their personalized mRNA cancer vaccine intismeran in combination with Keytruda for melanoma achieved dual endpoints, becoming the world’s first clinically proven successful mRNA therapeutic cancer vaccine based on real-world evidence. Moderna’s stock surged nearly 177% in a single day, adding about $44 billion to its market value in one day, and the Nasdaq Biotechnology Index jumped 6.4%, its largest gain in six years. With these two major developments occurring back-to-back, sentiment in risk assets rebounded noticeably.

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