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Dow rises nearly 550 points as markets break six-day losing streak

By Jonna Lorenz
U.S. stocks rose higher Wednesday, breaking a six-day losing streak as Treasury yields declined and Bank of America announced plans to buy bonds. File Photo by John Angelillo/UPI | <a href="/News_Photos/lp/a7f3e80988d58e61d83fe918846bc2b8/" target="_blank">License Photo</a>
U.S. stocks rose higher Wednesday, breaking a six-day losing streak as Treasury yields declined and Bank of America announced plans to buy bonds. File Photo by John Angelillo/UPI | License Photo

Sept. 28 (UPI) -- U.S. stocks rallied Wednesday, closing with substantial gains after a six-day losing streak as Treasury yields sank and Bank of England shifted its monetary policy.

The Dow Jones Industrial Average climbed 548.75 points, or 1.88%, to close at 29,683.74, the S&P 500 increased 71.75 points, or 1.97%, to 3,719.04, and the Nasdaq Composite rose 222.13 points, or 2.05%, to close at 11,051.64.

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The rebound came after Bank of England said it would buy bonds to stabilize its financial markets after the British pound fell to a record low against the dollar this week. Investors welcomed the reversal in monetary tightening moves that have fueled recession fears and roiled markets.

"U.S. stocks are rallying after the BOE's intervention tentatively halted the bond market sell-off," Edward Moya, senior market analyst at Oanda said, according to Investors Business Daily.

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"Some traders are growing confident that we are close to seeing the end of the Fed's tightening cycle, but that is still too early to say."

The benchmark 10-year Treasury yield fell to 3.73%, its largest drop since 2009, after rising above 4%.

"Long-dated U.S. Treasury price volatility is hitting statistically unusual levels right now, just as it did in June 2022," DataTrek's Nicholas Colas said, according to Yahoo Finance. "U.S. equities bottomed in that month once yields stabilized."

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Oil rose Wednesday, with West Texas Intermediate crude oil gaining 4.6% to $82.15 per barrel.

All but one of the Dow's 30 stocks closed higher, with Home Depot rising 5%, Boeing up 4.8% and Disney climbing 3.8%. Apple closed down 1.3% after Bloomberg reported it was backing off plans to increase production of its iPhone 14 amid lower-than-expected demand.

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