- US stocks rose after Treasury yields declined sharply on debt repurchase plans
- Dow Jones increased by 193.69 points or 0.36 percent on Wednesday
- S&P 500 gained 33.71 points, a 0.44 percent rise
US stock markets moved higher on Wednesday as Treasury yields declined sharply after the US Treasury Department announced plans to more than double the size of its government debt repurchase operations.
The Dow Jones Industrial Average rose 193.69 points, or 0.36%, while the S&P 500 gained 0.44%, or 33.71 points. The Nasdaq Composite also advanced 0.44%, or 113.52 points.
The rally came as the sharp rise in long-term Treasury yields showed signs of easing. The Treasury Department said it would increase the maximum size of its debt buyback operations from $2 billion to at least $4 billion, targeting longer-duration securities.
The expanded buyback programme will focus on the 10- to 20-year and 20- to 30-year segments of the Treasury market, areas that have faced weak demand since late June.
The announcement triggered a sharp decline in yields at the longer end of the Treasury curve. The 30-year Treasury yield, which had climbed above 5.33% in the previous session to hit a fresh 19-year high, fell nearly 9 basis points to 5.196%. Meanwhile, the 10-year Treasury yield declined around 6 basis points to 4.647%.
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Meanwhile, Marvell Technology gained more than 12% after securing a strategic deal with Google centered on its Tensor Processing Units (TPUs). As part of the agreement, Marvell issued Alphabet a warrant allowing the tech giant to purchase up to nearly 59 million shares of Marvell common stock.
The Treasury announcement comes after a difficult session for global fixed-income markets. US stocks fell on Tuesday, with the S&P 500 registering its third consecutive decline, as sovereign bond yields across major economies climbed to multi-year highs.
However, gains in the broader market were partly offset by weakness in some technology stocks following a report that OpenAI's second-quarter financial results disappointed investors.
According to a Wall Street Journal report citing sources, OpenAI's revenue increased 18% between the first and second quarters, but losses also widened during the period.
The report weighed on some technology names. Oracle shares fell nearly 1.43%, while Alphabet also traded lower. Chipmakers, including Intel were also under pressure at one point.
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