The biotechnology sector, as measured by the XBI ETF, rallied over 2% due to a combination of strong corporate earnings and significant merger and acquisition activity. Regeneron Pharmaceuticals reported second-quarter earnings and revenue that substantially beat analyst expectations, driven by the strength of its key drugs. Additionally, Johnson & Johnson announced a major deal, securing an option to acquire Sail Biomedicines for nearly $2.6 billion, further fueling positive sentiment in a sector already buoyed by a record year for M&A.