New York stocks rebounded following the US Treasury’s announcement that it would expand its long-term Treasury buyback program. The Dow closed up 119.65 points from the previous day at $53,463.05, while the Nasdaq ended 41.38 points higher at 26,331.09.
Long-term interest rates fell after the US Treasury announced an expansion of its long-term Treasury buyback program, sending New York stocks higher for the first time in 4 trading days. The Dow Jones Industrial Average closed up $119.65 from the previous close, while the Nasdaq Composite Index, which includes many technology stocks, ended 41.38 points higher.
The Treasury’s announcement led markets to view it as an indication that the department wanted to avoid further increases in interest rates, prompting buying of long-term Treasuries. Yields on 30-year and other US Treasuries, which had reached elevated levels the previous day, fell sharply, easing investor concerns. Buying spread across stocks generally, led by pharmaceutical companies.