US close: Stocks higher as Treasury buyback plan pulls long‑term yields lower

(Sharecast News) - Major indices closed higher on Wednesday as longdated Treasury yields retreated after the US Treasury said it would significantly expand buybacks of longerterm government debt.

At the close, the Dow Jones Industrial Average was up 0.22% at 53,463.05, while the S&P 500 advanced 0.21% to 7,707.98 and the Nasdaq Composite saw out the session 0.16% firmer at 26,331.09.

The Dow closed 119.65 points higher on Wednesday, reversing losses recorded in the previous session after a global bond selloff and higher oil prices continued to weigh on sentiment.

However, yields on the 10 to 30year part of the curve fell after officials announced plans to at least double the size of repurchases, including the 20year sector. The 30year Treasury yield, which hit a 19year high above 5.33% in the prior session, dropped more than ten basis points to 5.184%, while the 10year note eased over six basis points to 4.637%.

Wednesday's other key focal point was the publication of minutes from the Federal Reserve Open Market Committee's July meeting, which revealed officials signalled that further policy tightening could be required unless inflation showed clearer signs of easing. The summary noted that "many participants" judged additional rate rises would likely be needed if price pressures failed to moderate, with some warning that financial conditions might not yet be restrictive enough to return inflation to the 2% target.

Even so, the FOMC voted 9-3 to keep the federal funds rate unchanged at 3.5% to 3.75%, where it has remained throughout 2026. Dissenting members favoured a 25 basis point increase, arguing it could help avoid a steeper and more costly tightening cycle later on.

Elsewhere on the macro front, US mortgage applications dropped 0.4% in the week ended 14 August, according to the Mortgage Bankers Association, cutting into the two-month high increase seen in the prior week. Applications to refinance a mortgage, which are generally more sensitive to week-to-week rate changes, rose by 1.5% week-on-week, while applications to purchase a home slipped 2%. Last week's decline comes as the average contract interest rate for 30-year fixed-rate mortgages was unchanged at 6.77% - four basis points shy of the one-year high recorded in late July.

In the corporate space, Target posted another strong set of quarterly numbers on Wednesday, with tariff refunds giving earnings an additional lift and prompting the retailer to raise its fullyear guidance as its turnaround continued to take hold. For the second quarter, Target said revenues came in at $26.54bn, ahead of the $26.14bn expected, while net income jumped to $1.88bn or $4.11 per share, up from $935m or $2.05 a year earlier.

Fellow retailer Lowe's, on the other hand, struck a more cautious tone on its outlook, flagging ongoing "pressure" in DIY consumer spending. Secondquarter revenues came in at $26bn, just shy of the $26.1bn expected, while adjusted earnings per share of $4.27 - which included an $0.11 benefit from tariff refunds - topped forecasts for $4.22.

Elsewhere, Moderna shares surged more than 90%, putting the stock on track for its best day on record, after an experimental skincancer vaccine developed with Merck delivered positive latestage trial results, while Marvell Technology jumped more than 12% after striking an agreement with Google involving its tensorprocessing units and issuing Alphabet a warrant to buy up to nearly 59m Marvell shares.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Merck & Co. Inc. (MRK) $152.20 12.60%

Salesforce.Com Inc. (CRM) $206.09 5.07%

Amgen Inc. (AMGN) $442.36 4.60%

Apple Inc. (AAPL) $316.83 3.51%

Walt Disney Co. (DIS) $106.93 2.87%

Nike Inc. (NKE) $41.05 2.47%

Home Depot Inc. (HD) $344.30 2.02%

International Business Machines Corporation (CDI) (IBM) $237.16 1.93%

Dow Chemical Co. (DOW) $31.75 1.80%

Coca-Cola Co. (KO) $90.35 1.72%

Dow Jones - Fallers

Intel Corp. (INTC) $92.80 -6.26%

Caterpillar Inc. (CAT) $816.15 -2.94%

Goldman Sachs Group Inc. (GS) $1,021.65 -1.81%

Cisco Systems Inc. (CSCO) $110.55 -1.68%

JP Morgan Chase & Co. (JPM) $357.26 -1.65%

Travelers Company Inc. (TRV) $362.22 -1.55%

Unitedhealth Group Inc. (UNH) $388.61 -1.35%

Boeing Co. (BA) $222.20 -0.39%

3M Co. (MMM) $180.66 -0.15%

S&P 500 - Risers

Estee Lauder Co. Inc. (EL) $98.01 16.30%

Merck & Co. Inc. (MRK) $152.20 12.60%

Coty Inc. Class A (COTY) $3.03 10.58%

Alexandria Real Estate Equities Inc. (ARE) $50.55 10.27%

Newmont Corporation (NEM) $125.08 7.85%

Perrigo Company plc (PRGO) $13.96 7.63%

Illumina Inc. (ILMN) $205.00 6.98%

Cognizant Technology Solutions Corp. (CTSH) $60.93 6.93%

FMC Corp. (FMC) $10.81 6.82%

Vertex Pharmaceuticals Inc. (VRTX) $552.06 6.57%

S&P 500 - Fallers

Seagate Technology Plc (STX) $832.56 -12.67%

Western Digital Corp. (WDC) $462.09 -9.67%

Ipg Photonics Corp. (IPGP) $76.57 -9.53%

Akamai Technologies Inc. (AKAM) $112.84 -8.78%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Keysight Technologies Inc. (KEYS) $319.45 -6.32%

Intel Corp. (INTC) $92.80 -6.26%

Nucor Corp. (NUE) $248.74 -5.85%

KLA-Tencor Corp. (KLAC) $187.27 -5.77%

Broadcom Inc. (AVGO) $362.48 -5.60%

Nasdaq 100 - Risers

Mercadolibre Inc. (MELI) $1,908.65 7.90%

Illumina Inc. (ILMN) $205.00 6.98%

Cognizant Technology Solutions Corp. (CTSH) $60.93 6.93%

Vertex Pharmaceuticals Inc. (VRTX) $552.06 6.57%

Gilead Sciences Inc. (GILD) $147.60 5.57%

Biogen Inc (BIIB) $221.56 5.13%

Amgen Inc. (AMGN) $442.36 4.60%

Trip.com Group Limited (TCOM) $46.51 4.38%

Intuit Inc. (INTU) $362.47 4.35%

Adobe Systems Inc. (ADBE) $272.47 4.33%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Seagate Technology Plc (STX) $832.56 -12.67%

Western Digital Corp. (WDC) $462.09 -9.67%

Intel Corp. (INTC) $92.80 -6.26%

KLA-Tencor Corp. (KLAC) $187.27 -5.77%

Broadcom Inc. (AVGO) $362.48 -5.60%

Lam Research Corp. (LRCX) $307.17 -5.26%

Align Technology Inc. (ALGN) $163.04 -4.66%

Micron Technology Inc. (MU) $937.10 -3.93%

Baidu Inc. (BIDU) $92.87 -3.83%