NEW YORK, Aug. 19 (Xinhua) -- U.S. stocks ended higher on Wednesday, as U.S. bond yields retreated following an announcement from the Treasury Department that it would significantly ramp up buybacks of long-dated government debt.
The Dow Jones Industrial Average rose 119.65 points, or 0.22 percent, to 53,463.05. The S&P 500 added 16.22 points, or 0.21 percent, to 7,707.98. The Nasdaq Composite Index increased by 41.379 points, or 0.16 percent, to 26,331.09. All three indexes snapped a three-day losing streak.
Seven of the 11 primary S&P 500 sectors ended in green, with healthcare and consumer discretionary leading the gainers by rising 3.52 percent and 2.14 percent, respectively. Industrials and technology led the laggards, falling 0.89 percent and 0.73 percent, respectively.
Equities gained upward momentum after the U.S. Treasury yields eased from multi-year highs. Bond prices rallied after the Treasury Department announced plans to increase buybacks of long-dated government debt by at least double across securities in the 10-year to 30-year sector. The yield on the benchmark 10-year Treasury note fell by 5 basis points to 4.65 percent, while the 30-year bond yield dropped 9 basis points to 5.19 percent after touching its highest level since 2007 earlier in the week.
On the trade policy front, market sentiment was supported by easing North American tensions after U.S. President Donald Trump posted on social media that he had paused proposed 50 percent tariffs on Canadian imports for three days, indicating that both nations are finalizing a bilateral trade agreement.
Minutes from the Federal Open Market Committee's latest policy meeting revealed that several central bank officials favored raising interest rates at last month's session. The minutes showed that many participants assessed that further policy tightening would likely be necessary if inflation does not decline toward the central bank's target in the near term.
In the corporate arena, healthcare shares surged, anchored by a historic rally in biotechnology equities. Shares of Moderna skyrocketed nearly 177 percent to lead the S&P 500, while pharmaceutical partner Merck gained 12.6 percent to pace the Dow Jones Industrial Average after the companies reported positive clinical results from a late-stage trial evaluating an experimental mRNA-based cancer vaccine.
Retail earnings showed mixed market reactions. Off-price apparel retailer TJX Companies dropped 4.21 percent, while home improvement chain Lowe's and big-box retailer Target advanced after posting quarterly financial results.
