U.S. equities rose after the Treasury announced plans to expand debt buybacks, easing bond market pressure ahead of Fed minutes.
The S&P 500 climbed Wednesday following the Treasury Department’s announcement that it will more than double the size of its debt buyback program. The move aimed to stabilize government bond markets after a recent selloff drove yields higher, weighing on risk assets globally.
Stocks had closed lower Tuesday, dragged down by a decline in chipmakers and elevated bond yields. Analysts noted that rising long-end rates reflected investor concerns over persistent government spending and competition for capital amid the AI investment boom.
Global bonds steadied ahead of the Federal Reserve’s July meeting minutes, scheduled for release at 2 p.m. EDT. Market participants will scrutinize the minutes for clues on the central bank’s rate path amid mixed economic signals.