US stocks rally after Bank of England intervention

NEW YORK (AFP) – Wall Street stocks jumped on Wednesday, shaking off a recent slump and rallying after the Bank of England’s (BOE) intervention in the British bond market reassured investors.

Following a historic slump in the pound, the BOE announced it was temporarily buying up long-dated British government bonds “to restore orderly market conditions”.

In both Britain and the United States, the move pressured Treasury bond yields, which had risen sharply as central banks hiked interest rates.

The intervention “helped calm markets and led to a reversal of a spike (in bond yields) that we had seen earlier this morning”, said Mr Angelo Kourkafas of Edward Jones.

Analysts noted that stocks were poised for an upturn after a bruising stretch since mid-August that had pushed major indexes to their lowest level of 2022.

The Dow Jones Industrial Average finished up 1.9 per cent at 29,683.74.

The broad-based S&P 500 gained 2 per cent to 3,719.04, while the tech-rich Nasdaq Composite Index jumped 2.1 per cent to 11,051.64.

Among individual companies, Biogen surged nearly 40 per cent after announcing positive clinical results for treatment of mild cognitive impairment due to Alzheimer’s disease.

Apple fell 1.3 per cent following a Bloomberg report saying it is retreating on a plan to boost production of its new iPhone due to lacklustre demand.

Netflix advanced 9.3 per cent off the back of an analyst upgrade amid hopes for the streaming platform’s development of advertising-based services.

source https://eastmud.com/latest-news/us-stocks-rally-after-bank-of-england-intervention/