Treasury Bond Buys Ease Pressure on US Stocks
US stocks experienced a bounce back on Wednesday after the US Treasury Department announced plans to buy more government bonds, easing pressure on financial markets. The move led to a decline in Treasury yields, making borrowing money less expensive for everyone.
The S&P 500 rose 0.5% and is on track for its first gain in four days, while the Dow Jones Industrial Average was up 169 points or 0.3%. The Nasdaq composite also increased by 0.5%.
Strong profit reports from companies like Estee Lauder, Target, and Moderna helped support the stock market. Estee Lauder's revenue growth accelerated for a fourth straight quarter, while Moderna announced encouraging initial results from a study of a cancer vaccine it co-developed with Merck.
The Treasury Department's announcement came as investors were demanding higher interest rates to make up for growing risks of high inflation and continued government deficits. However, the 10-year Treasury yield fell to 4.65% from 4.71%, while the 30-year Treasury yield declined to 5.2% from 5.28%.