S&P 500 Surges 1.1% as Moderna Stock Pops on Cancer Vaccine Optimism and Trumps Tariff Reprieve

The S&P 500 experienced a significant surge on Wednesday, March 5, with a 1.1% gain, as the White House announced a delay in tariffs affecting U.S. automakers. This move had a profound impact on the market, with shares of major U.S. equities indexes fluctuating before gaining momentum in the afternoon to close the session higher. The Dow also ended 1.1% higher, while the Nasdaq was up 1.5%. The delay in tariffs provided a much-needed boost to the market, which had been under pressure due to concerns over U.S. economic growth.

Moderna's stock was the top performer in the S&P 500, surging 15.9% after a top executive announced that the biotech firm anticipates a 2027 release of its personalized cancer vaccine. This vaccine is being developed in collaboration with Merck, and the announcement sparked optimism among investors. Additionally, reports that Moderna's CEO purchased $5 million in common stock underscored internal confidence in the company's upcoming performance. The surge in Moderna's stock was a significant contributor to the S&P 500's gain, highlighting the importance of innovation and progress in the biotech sector.

The market's reaction to the tariff reprieve and Moderna's announcement was not limited to these specific stocks. Shares of military shipbuilder Huntington Ingalls Industries steamed 12.3% higher after President Trump discussed investments in the shipbuilding industry. Celanese, a chemical and specialty materials company, initiated cash tender offers aimed at purchasing its outstanding senior notes due in 2026 and 2027, and its shares jumped 12.7%. However, not all stocks performed well, with CrowdStrike Holdings reporting underwhelming full-year guidance and its shares dropping 6.3%. The price of crude oil futures also moved lower, dragging down numerous oil and gas stocks. These sector-wide impacts demonstrate the complex and interconnected nature of the stock market, where news and announcements can have far-reaching consequences.

Key takeaways from the market's performance on Wednesday include: * The S&P 500's 1.1% gain was driven by a delay in tariffs affecting U.S. automakers and optimism over Moderna's cancer vaccine. * Moderna's stock surged 15.9% after a top executive announced a 2027 release of its personalized cancer vaccine. * The market's reaction to the tariff reprieve and Moderna's announcement had sector-wide impacts, with shares of military shipbuilders and chemical companies rising, while cybersecurity and oil and gas stocks fell. * The complex and interconnected nature of the stock market means that news and announcements can have far-reaching consequences, making it essential for investors to stay informed and adapt to changing market conditions.