After initial declines, most key US indices are recording modest gains today. The S&P 500 is 0.3% above the line, while the Dow Jones is up 0.2%. The Nasdaq 100 is down 0.1%.
Investors' attention, however, is anchored elsewhere. Gold prices are rising by nearly 3.5%, while the US dollar is losing 0.8%.
Where to look for the cause of such moves?
Scott Bessent, US Treasury Secretary, announced today plans to double the US long-term bond buyback operations. The program is set to take effect on 9 September and will remain in force at least until 4 November, when the Treasury Department will provide new quarterly plans. The focus will be mainly on the long end of the curve, i.e., the purchase of long-term Treasury bonds.
We are observing a significant drop in yields across the entire curve, particularly strong at its long end. This is good news for the stock market, for at least two reasons.
- Firstly, it reduces the attractiveness of bonds as a relatively safe investment alternative.
- Secondly, it may translate into a reduction in financing costs for businesses.
It should be noted, however, that bond yields remain close to multi-year highs. In the case of 30-year bonds, the distance from the 19-year peak is less than 14 bps. The scale of the changes is noticeable, but it seems unlikely that it will lead to a long-term trend change.
Stock market
As mentioned, today's Treasury Department actions supported a modest rebound in the stock market.
Figure 1: Winners and Losers on the S&P 500 (19.08.2026)
Source: XTB Research, 19.08.2026
Industry media headlines are dominated today by the over 150% rise in Moderna's stock price. This is the aftermath of the announcement of positive late-stage trial results for a personalized cancer vaccine. In combination with the immunotherapy drug Keytruda from Merck, it reduced melanoma recurrence more effectively than immunotherapy alone. It is tailored to the specific mutations of a specific patient's tumor, and its production process takes about six weeks. Moderna's CEO, Stephane Bancel, estimated that it could be approved as early as 2027.
It is also worth mentioning the significant increase in the share price of cosmetics giant Estee Lauder (+17%). This follows impressive quarterly results. Revenues exceeded expectations and are again showing positive year-on-year dynamics (after three dismal quarters of break). The company also raised expectations regarding its adjusted operating margin. CEO, Stephane de La Faverie, as part of efforts to improve profitability, also confirmed planned headcount reductions of nearly 10,000 positions.
In the European market, no sensations. The German DAX and French CAC40 finished the day almost unchanged. The Spanish Ibex 35 is losing (-0.4%). On the upside, the Polish WIG20 stands out (+1.7%).
Dollar weakens by 0.8%
US Open: Market Tries to Regain Ground, Moderna Up 140% (19.08.2026)
Morning Wrap: Oil Brent surpasses 91 USD (18.08.2026)
🟠Is there a shortage of physical copper?
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