New York stocks closed higher across the board on Monday, finding their footing after a challenging stretch, as a decline in long-term Treasury yields and better-than-expected earnings from major retailers helped lift investor sentiment. The market opened firm before consolidating gains through a choppy afternoon session, though technology and semiconductor shares continued to show some softness.

The Dow Jones Industrial Average rose 119.65 points, or 0.22%, to close at 53,463.05. The S&P 500 gained 16.22 points, or 0.21%, to finish at 7,707.98, while the Nasdaq Composite climbed 41.38 points, or 0.16%, to end the day at 26,331.09.

Seven of the S&P 500's eleven major sectors advanced. Healthcare led the way with a gain of 3.52%, followed by consumer discretionary at 2.14%. On the downside, industrials and technology were the weakest sectors, falling 0.89% and 0.73%, respectively.

Oil prices climb on geopolitical risks

International oil prices extended their rally on Monday, driven by persistent concerns over supply disruptions tied to uncertain negotiations between the U.S. and Iran. West Texas Intermediate crude for September delivery settled 89 cents higher at $85.83 per barrel, a gain of 1.05%. Brent crude for October delivery rose 60 cents to close at $91.62 per barrel, up 0.66%.

Treasury yields slide after buyback announcement

The Treasury Department announced on Monday that it would at least double the size of its buyback operations for long-dated securities, a move designed to bolster liquidity in that segment of the market. The announcement came after the 30-year yield had surged to its highest level since 2007, a spike that had weighed heavily on equities, particularly tech stocks. Following the news, the benchmark 10-year yield fell 6 basis points to 4.65%, while the 30-year yield dropped 8.9 basis points to 5.195%.

Minutes from the Federal Reserve's July meeting, released Monday, revealed notable divisions among policymakers regarding inflation and the future path of monetary policy. The July 28-29 session concluded with a 9-3 vote to hold rates steady, with three officials favoring a 25-basis-point hike. While some members argued that inflation remains too far above the Fed's 2% target and supported further tightening, most officials indicated they would prefer to base future decisions on incoming data on inflation and employment.

According to Ben Emons, chief investment officer at a Fed-watching firm, investors have interpreted the Treasury buyback program in different ways, with some viewing it as a form of quantitative easing. However, Emons clarified that the Treasury's program is primarily a liquidity management tool—repurchasing older debt while issuing new securities—rather than the outright bond purchases associated with monetary easing, and it does not create new money supply. He added that this interpretation helps explain the flattening of the 2-year to 30-year yield curve following the announcement.

Massimo Santicchia, head of U.S. equities at asset manager Procyon, noted that the strong performance of value stocks points to resilience in the U.S. economy and the corporate earnings cycle. He acknowledged the ongoing tension between solid underlying fundamentals and rising financing costs tied to higher bond yields, but concluded that, on balance, the environment remains favorable for stocks given the still-robust earnings outlook.

Healthcare rally driven by Moderna and Merck

The healthcare sector was the primary engine of Monday's market gains. Shares of Moderna Inc. surged an extraordinary 176.97%, while Merck & Co. Inc. jumped 12.60% after the two companies announced positive clinical trial results for a personalized mRNA cancer treatment developed in collaboration.

Chip designer Marvell Technology Inc. saw its shares rise 9.85% after the company revealed an expanded partnership with Google parent Alphabet Inc. to develop custom AI chips tied to Google's tensor processing units (TPUs). As part of the deal, Marvell issued warrants to Alphabet, which could purchase up to 58.97 million shares—valued at roughly $12.18 billion if fully exercised.

Retail earnings also captured investor attention. Target Corp. advanced 4.28% after reporting second-quarter revenue of $26.54 billion, up 5.3% year over year, with earnings per share of $4.11 significantly beating the consensus estimate of $2.34. The company also raised its full-year sales guidance, fueling optimism about its operational improvements and consumer demand.

Home improvement retailers also drew interest. Lowe's Companies Inc. added 2.02% after posting quarterly earnings per share of $4.27, slightly above the $4.22 expected by analysts, although revenue of $25.96 billion came in below the $26.16 billion forecast. The company lowered its full-year guidance as a result. Meanwhile, Home Depot Inc. also saw its shares rise 2.02% on the day.