What Happened?
Shares of biotechnology company Moderna (NASDAQ: MRNA) jumped in the afternoon session after the company presented promising early data for its investigational cancer antigen therapy, mRNA-4359, from a Phase I/II study.
The therapy, when used alongside Merck's Keytruda, showed positive results in melanoma patients. Data presented at the European Society for Medical Oncology Congress revealed a 24% objective response rate, which measures tumor shrinkage. The rate of response increased significantly to 67% in a subgroup of patients whose tumors were positive for the PD-L1 biomarker. Furthermore, the study recorded a 60% disease control rate, meaning patients either saw their tumors shrink or their disease stabilize. The company also noted that the therapy had a manageable safety profile.
Contributing to the positive momentum, the major indices rebounded as signs of easing trade tensions between the U.S. and China emerged over the weekend.
The tech-focused Nasdaq Composite jumped around 1.7%, while the S&P 500 gained 1.2%. This rebound follows a significant sell-off the previous trading day, which saw the Nasdaq plummet 3.6% and the S&P 500 sink 2.7% after threats of new tariffs heightened fears of a trade war. Investor sentiment improved after the U.S. President adopted a more conciliatory tone toward Beijing in a social media post. The shift in language helped calm market jitters and spurred a broad-based rally as investors welcomed the potential de-escalation of the trade dispute.
After the initial pop the shares cooled down to $27.00, up 0.5% from previous close.
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What Is The Market Telling Us
Moderna’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 3.5% on the news that worries over worsening trade relations with China were triggered by critical comments from President Donald Trump. The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. The trade dispute flared up after China imposed export controls on rare earth minerals, which are critical components for high-tech manufacturing. The escalation of the trade war raises concerns about supply chain disruptions and increased costs for technology companies, which are heavily reliant on global trade, leading to a broad sell-off in the sector.
Moderna is down 35.7% since the beginning of the year, and at $27.00 per share, it is trading 53.2% below its 52-week high of $57.73 from October 2024. Investors who bought $1,000 worth of Moderna’s shares 5 years ago would now be looking at an investment worth $344.81.
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