US stocks rise as US, UK yields fall after BoE intervention

On Wednesday, US stock indexes turned higher and rebounded, largely helped by sliding Treasury yields from multiyear highs, and a surprise intervention from the Bank of England in the UK gilt, or government-issued bonds market, but Wall Street stocks were still in danger of recording a seven-day losing streak.

On Tuesday, the Dow Jones Industrial Average fell 126 points, or 0.43%, to 29135, the S&P 500 declined 8 points, or 0.21%, to 3647, and the Nasdaq Composite gained 27 points, or 0.25%, to 10830.

The British pound stabilized after the Bank of England announced a bond-buying plan. The Dow Jones Industrial Average gained 441 points, or about 1.5%. The S&P 500 jumped 1.6%, one day after the index broke below the June intraday low. The Nasdaq Composite was up 1.5%. The Dow and the S&P 500 were on pace to snap a six-day losing streak.

The Bank of England said it would temporarily purchase long-dated UK government bonds in an effort to stabilize its plunging currency. Sterling briefly popped on the news and was last trading 0.1% lower against the dollar at $1.0726.