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Stock market sentiment
Economist after US stimulus purchases: “Interest rate problems persist”

The US Treasury Department is more than doubling its repurchases of US government bonds, which is pushing down long-term interest rates. SEB economist Elisabet Kopelman sees the measure as a clear signal that the government is concerned about high interest rates, but emphasizes that the problems persist.

– What they really need is for inflation to fall back and pave the way for lower interest rates from the Fed, she tells DI.

Shortly before 5 p.m., the US ten-year yield fell six points, from 4.70 to 4.64 percent.
 

Today's Stock market

Moderna's price surge costs short sellers 50 billion

Vaccine developer Moderna's price surge on Wednesday has cost short sellers the equivalent of around 50 billion kronor, according to S3 Partners.

- This is an exceptionally painful price movement for those who shorted Moderna, says the analyst firm's CEO Matthew Unterman to Bloomberg.

The share of short-listed shares has already fallen from around 20 to 14 percent this year. Unterman believes that the price surge will prompt more short-sellers to reduce their positions.

The stock surged as much as 160 percent after positive results in a late study of the company's personalized cancer vaccine against melanoma, a form of skin cancer. 

Wall Street breaks losing streak – Moderna rises 195 percent

Wall Street closed in the red, breaking a three-day losing streak. All leading indexes rose 0.2 percent.

US market interest rates fell after the country's Treasury Department announced that it will more than double the repurchases of long-term bonds. The 30-year interest rate fell 9 basis points to 5.20 percent while the 10-year fell just over 5 basis points to 4.65 percent.

The minutes from the Federal Reserve's latest interest rate meeting also showed that members saw room for higher interest rates if inflation is not subdued.

Among individual companies, Moderna surged 195 percent after positive phase 3 results for the company's cancer vaccine against melanoma, developed together with Merck.  Merck advanced over 13 percent on the same news.

Marvell Technology climbed 9 percent after a deal with Google linked to the company's AI chip. Google also received the right to buy Marvell shares for up to $12.2 billion.

Several other technology stocks fell after reports that OpenAI's second-quarter results disappointed investors.  Broadcom and AMD fell 4-5 percent.