Wall Street ends sharply higher as Treasury yields fall

Sept 28 (Reuters) – Wall Street ended sharply higher on Wednesday after its recent selloff, helped by falling Treasury yields, while Apple fell on concerns over demand for iPhones.

The S&P 500 posted its first gain in seven sessions after closing Tuesday at its lowest since late 2020.

Interest-rate-sensitive megacaps Microsoft, Amazon and Meta Platforms (META.O) rallied as the yield on 10-year Treasuries fell more than 0.26 percentage points on its biggest decline in one day since 2009.

Pushing yields lower on Treasury bills with maturities of six months and over, the Bank of England said it would buy long-term UK bonds in a bid to restore financial stability to shaken markets scale by the fiscal policy of the new government in London. Read more

“The two-year Treasury yield has risen steadily over the past few weeks, and for the first time we’ve seen it fall for two days in a row, and that’s given stocks a break,” Art said. Hogan, chief market strategist at B. Riley Wealth.

Investors have been listening carefully to comments from Federal Reserve officials on the monetary policy trajectory, with Atlanta Fed Chairman Raphael Bostic backing a further 75 basis point interest rate hike in November on Wednesday. . Read more

The Fed will likely get borrowing costs where they need to be early next year, Chicago Federal Reserve Chairman Charles Evans said. Read more

US stocks have been battered in 2022 by fears that an aggressive push by the Fed to raise borrowing costs could send the economy into a slowdown.

Apple Inc fell 1.3% after Bloomberg reported the company was backing away from ramping up production of its new iPhones this year after an anticipated surge in demand failed to materialize. Read more

Apple was a relative outperformer in the 2022 stock market selloff, down about 15% year-to-date, versus the S&P 500’s 22% loss.

All 11 S&P 500 sector indices advanced, led by a 4.4% jump in energy (.SPNY) and a 3.2% jump in communication services (.SPLRCL).

The Dow Jones Industrial Average (.DJI) rose 1.88% to end at 29,683.74 points, while the S&P 500 (.SPX) gained 1.97% to 3,719.04. It was the S&P 500’s biggest one-day gain since Aug. 10.

The Nasdaq Composite (.IXIC) jumped 2.05% to 11,051.64.

Biogen Inc (BIIB.O) jumped 40% after saying its experimental Alzheimer’s drug, developed with Japanese partner Eisai Co Ltd (4523.T), had been successful in slowing cognitive decline. Read more

Eli Lilly & Co, which is also developing a drug for Alzheimer’s disease, jumped 7.5% and is among the biggest risers on the S&P 500 index.

Advancing issues outnumbered declining ones on the NYSE by a ratio of 5.82 to 1; on the Nasdaq, a ratio of 3.66 to 1 favored advancers.

The S&P 500 posted a new 52-week high and 30 new lows; the Nasdaq Composite recorded 26 new highs and 224 new lows.

Volume on U.S. exchanges was 11.7 billion shares, compared to an average of 11.4 billion for the full session over the past 20 trading days.

Reporting by Noel Randewich in San Francisco and Shreyashi Sanyal, Susan Mathew and Ankika Biswas in Bengaluru; Editing by Vinay Dwivedi, Arun Koyyur and Jonathan Oatis

Our standards: The Thomson Reuters Trust Principles.