US stocks snapped a three-day losing streak Wednesday after the Treasury stepped in to calm a brutal bond selloff. The Dow, S&P 500, and Nasdaq each gained roughly 0.2% as the 10-year yield fell to 4.65% after Treasury announced plans to double its long-term debt buybacks.

Elsewhere, Moderna exploded 177% after positive late-stage results for its melanoma vaccine, while OpenAI said it could go public as soon as 2027. The AI giant's annualized revenue has now topped $40 billion.

Today:

💰 How to build dividend income that actually lasts
🤖 OpenAI hits the brakes on its next AI model
🚀 Etched just hit a $21B valuation

Let's get started.

This is not financial advice. Always do your own research. Past performance doesn’t guarantee future results.

US government debt crossed $40 trillion. 192 years for the first trillion. 5 months for the last. Treasury yields hit a 19-year high. Capital costs matter. Higher yields reset growth valuations. Companies growing earnings 20%+ still deserve premium multiples. Companies growing 5% don't. The game doesn't change. The bar gets higher.

This filters the market naturally. Abundance still compounds, AI, robotics, infrastructure create real productivity gains. But that abundance needs to show up in earnings now. Capital gets expensive, so it flows to companies generating real returns. The best companies separate. The wannabes get exposed.

Growth investors who chased valuation face real pressure. Growth investors who picked businesses compounding 15%+ keep winning. Selectivity matters more. Winners win harder.

Watch 10-year yields. If they hold above 5%, growth multiples compress. But earnings growth above 10-15% still beats risk-free rates. Find businesses growing earnings faster than yields rise and you win.

US stocks rose Wednesday, snapping a three-day losing streak after the Treasury Department moved to stem a brutal bond selloff that had pushed yields to their highest levels in years.

Treasury Secretary Scott Bessent announced the department would double its buybacks of long-dated government debt, purchasing at least $4 billion of securities in the 10-year to 30-year sector. The move quickly reversed a selloff that had dominated global headlines and pushed the 10-year yield to 4.74% earlier this week. After the announcement, the 10-year yield dropped 5 basis points to 4.65%, while the 30-year yield fell 9 basis points to 5.19% after hitting its highest level since 2007. The intervention signals Bessent's ongoing effort to tamp down long-term borrowing costs, though critics warn it could fuel inflation and pressure Fed Chairman Kevin Warsh to align monetary policy with Treasury objectives.

Moderna shares exploded 176% higher after the company reported positive results from a late-stage trial of a melanoma vaccine developed with Merck. The vaccine showed significant improvement in recurrence-free survival for patients with high-risk melanoma. Merck shares also gained on the news.

OpenAI will go public in 2027 or sooner, CFO Sarah Friar told employees during an all-hands meeting Wednesday. "The IPO is not a finish line, it is a milestone, another fundraise," Friar said, according to CNBC. She told staff not to worry if rival Anthropic beats them to market. OpenAI confidentially filed its prospectus with regulators in June and is under pressure to justify its $852 billion valuation. The company's revenue run rate is up 35% quarter to date, enterprise revenue is up 50%, and its AI coding product has hit 20 million weekly active users. Annualized revenue recently topped $40 billion.

President Trump paused 50% Canadian tariffs for three days after announcing a last-minute deal with Prime Minister Mark Carney's team. President Trump posted on Truth Social that the pause came "based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!" While experts said the tariffs would have had limited economic impact, the negotiations represent a strong signal ahead of upcoming talks on the US-Mexico-Canada Trade Agreement.

Fed meeting minutes released Wednesday showed several officials wanted to raise rates last month. The minutes from the July policy meeting indicated that more committee members now see hikes as necessary if inflation doesn't come down soon. Warsh will have an opportunity to address these tensions at the annual Jackson Hole gathering next week, where he'll likely face questions about the Fed's relationship with Treasury and the bond market.

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Cheers,
Brandon & Blake of Invested Inc