US stock market today: Wall Street edged higher on Wednesday after the US Treasury Department said it could increase its purchases of government bonds, easing some of the pressure that has been weighing on financial markets globally. The market also received support from strong spring-quarter earnings from Estee Lauder and other US companies.The S&P 500 gained 0.3%, putting it on course for its first advance in four sessions after reaching a record high last week. The Dow Jones Industrial Average rose 65 points, or 0.1%, as of 9:35 a.m. Eastern time, while the Nasdaq composite added 0.2%.
Treasury yields in focus
Stocks have faced increasing pressure in recent sessions as concerns over inflation, mounting government debt and other factors have pushed Treasury yields higher. Rising yields increase borrowing costs across the economy and can also weigh on valuations of stocks and other investments, according to an AP report.Treasury yields moved lower on Wednesday morning after the US Treasury Department announced plans to at least double its intended purchases of longer-dated Treasury securities. The department said the move was aimed “to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants.”The yield on the 10-year Treasury fell to 4.65% from 4.71% at the end of Tuesday’s session, a significant move in the bond market. Despite the decline, it remains considerably above the 3.97% level recorded before the war with Iran pushed oil prices and concerns over inflation higher.The 30-year Treasury yield, which recently reached its highest level since 2007, declined more sharply, falling to 5.20% from 5.28% late Tuesday.
Stock movement
On Wall Street, Moderna and Merck were among the stocks helping lift the market after the companies reported positive results from a study involving a cancer vaccine they jointly developed. The treatment produced better recurrence-free survival among melanoma patients who received it alongside Keytruda, Merck’s prescription immunotherapy drug, compared with patients treated with Keytruda alone.Moderna shares surged 89.5%, while Merck gained 9.7%.The steady stream of US companies reporting stronger-than-expected spring-quarter profits has continued to provide support to the broader stock market.Estee Lauder jumped 15.7% after CEO Stéphane de La Faverie said a key indicator of revenue growth had accelerated for the fourth consecutive quarter. The company recorded higher revenue across its global markets, with mainland China delivering the strongest growth.The skincare company posted earnings of 39 cents per share after excluding certain restructuring costs and other one-time expenses. That compared with 9 cents a share a year earlier and exceeded the 32 cents analysts had expected, according to FactSet.Such earnings growth is important because stock valuations tend to move in line with corporate profits over the longer term. Strong results also help counter concerns that share prices have risen too far during their run to record levels.Target gained 4.5%, Lowe’s advanced 1% and homebuilder Toll Brothers climbed 7.1% after each company reported quarterly profits that came in above analysts’ expectations.Stock markets outside the US were mostly weaker across Asia and Europe.Tokyo’s Nikkei 225 dropped 3.2% as higher bond yields added to selling pressure on technology shares, pulling the benchmark lower. South Korea’s Kospi fell 5.8%. The index has experienced some of the world’s biggest swings because of its heavy exposure to artificial intelligence stocks.
