US stock indices ended Wednesday mixed as weakness in AI infrastructure and bank shares offset gains elsewhere. The S&P 500 rose 0.2%, the Dow Jones Industrial Average advanced about 120 points, and the Nasdaq Composite slipped 0.2%.
The US Treasury announced it would double the cap on buybacks of long-term securities for the next quarter, extending its efforts to rein in the recent jump in longer-dated benchmark borrowing costs. Along with lower interest rates, the prospect of increased dollar liquidity stemming from these Treasury operations helped support equities. This came as minutes from the latest FOMC meeting showed that some policymakers still see the possibility of additional rate hikes this year.
Retail stocks largely traded higher after a run of earnings reports: TJX fell 4.2%, while Target gained 4.3% and Lowe’s rose 2%. The pharmaceutical sector rallied strongly, with Merck climbing 12.6% and Moderna surging 177% after a trial of their joint vaccine showed a reduction in melanoma recurrence.
In contrast, underwhelming results from OpenAI weighed on semiconductor names, dragging AMD down 3.7% and Intel down 4%.