US stocks halt their slide after the Treasury Department moves to ease pressure from the bond market
Treasury buybacks eased bond-market pressure as stronger corporate earnings helped end a three-day slide, with the S&P 500, Dow and Nasdaq all edging higher.
- On Wednesday, the U.S. Treasury Department announced it will at least double buyback operations for longer-dated Treasury bonds from Sept. 9 through Nov. 4, targeting liquidity support in 10- to 30-year sectors.
- Global bond yields surged to multi-decade highs this week as concerns over inflation and government debt strained financial markets, prompting the Treasury's intervention to curb the recent selloff in long-duration debt.
- Moderna surged 177% after reporting positive cancer-vaccine study results with Merck, which jumped 12.6%, providing essential support to the S&P 500 amid broader economic anxieties.
- The S&P 500 snapped a 3-day losing streak on Wednesday, gaining 0.2%, as yields on the 10-year Treasury fell to 4.64% from 4.71% and the 30-year note dropped to 5.18% from 5.28%.
- Skepticism remains about long-term effectiveness, as BNP Paribas strategists labeled the buybacks "necessary, but not sufficient" to offset declining Fed credibility; the limited scale leaves investors questioning whether relief will persist.
142 Articles
142 Articles
Biotech and Merck's laboratory announced on Wednesday 19 August that they had achieved convincing results in the fight against melanoma in the final phase of a clinical trial. In reaction, Moderna's action almost tripled in a stock market session.
The New York Stock Exchange negotiates in fall at the beginning of the session this Thursday, August 20, reversing the positive trend it recorded throughout yesterday, which was marked by the announcement of the U.S. Treasury Department to double the volume of buybacks of long-term bonds (from 10 to 30 years). By index, the industrial Dow Jones declines 0.64% (53.120.07), followed right behind by Nasdaq (-0.38%) and S&P 500 (-0.24%). The oil mar…
Why the bond market is acting like it did before the Great Recession
Normally quiet, the bond market can occasionally send warning signals loud enough to hit stock markets worldwide and even grab the attention of U.S. presidents and other world leaders. After the bond market’s alarm bells rose in volume through the summer, the Trump administration announced on Wednesday a move that could help calm it down. The U.S. Treasury Department said it will more than double the amount of U.S. government bonds that it will …
Henry Herald
US futures little changed after US Treasury doubles bond buybacks
U.S. futures are relatively unchanged after the U.S. Treasury Department said it would at least double the size of planned purchases of longer-term government debt. Futures for the S&P 500 were little changed on Thursday, while those for the Dow…
Morning Business Report: Moderna shares soar after positive vaccine results as Wall Street rebounds
(LILAMAX)- Wall Street finished higher Wednesday, snapping a three-day losing streak as all major indexes gained ground. The Dow led the way, rising 124 points. Moderna was a standout performer, with shares soaring 177% after the company reported positive results involving its experimental mRNA melanoma vaccine. Amazon is also placing a bigger bet on drone delivery. The company’s Prime Air service is projected to reach 500 U.S. cities by the end…
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