US stocks rebound after Treasury signals larger buybacks
US stock indices were slightly above the flatline on Tuesday after the Treasury said it will double the limit on buybacks of long-term notes and bonds.
US stock indices were higher on Tuesday after the Treasury signaled it will buy back more Treasury securities.
The S&P 500, Dow, and Nasdaq 100 were slightly above the flatline.
The Treasury stated it would double the limit on buybacks of long-term notes and bonds, adding to a series of other measures it took to control the recent surge in longer benchmark borrowing costs.
Besides reducing rates, the outlook of higher dollar liquidity also supported equities.
US yields were also in focus ahead of the release of FOMC minutes.
Gains were broad on most sectors, with software application and hyperscalers mostly trading higher.
Meanwhile, retail stocks gained after TJX, Target, and Lowe's all reported second-quarter earnings.
On top of that, Moderna stock prices doubled and Merck surged 10% after a trial on their joint vaccine cut recurrence in melanoma.