CNBC

Lead Story

Treasury Secretary Scott Bessent’s decision to more than double the government’s long-term debt buybacks to at least $4 billion injected immediate relief into a highly stressed bond market. This unexpected intervention successfully cooled soaring long-dated yields and snapped a three-day losing streak across major U.S. stock indices.

Markets & Economics

The S&P 500 snapped a three-day slide to close up 0.2% at 7,707.98, while the Dow Jones Industrial Average rose 119.65 points to 53,463.05 and the Nasdaq Composite added 0.2% to close at 26,331.09. Equities found a supportive tailwind as the 10-year U.S. Treasury yield fell 6 basis points to 4.647% and the 30-year bond yield tumbled 9 basis points to 5.196% following the Treasury Department’s upscaled buyback operation, which offered a brief respite after the 30-year yield touched multidecade highs near 5.33%. However, underlying fiscal anxieties remain elevated as official data confirmed total U.S. national debt has crossed the $40 trillion threshold, fueled by a massive $432.3 billion monthly deficit in July. The relief also coincided with the release of the Fed’s July minutes, which revealed a sharp 9-3 division under Chairman Kevin Warsh; three regional Fed presidents dissented in favor of a hike, and officials warned that further policy tightening would be necessary if inflation fails to cool. Meanwhile, trade war risks moderated at the eleventh hour as President Trump announced a temporary pause on his threatened 50% tariffs on Canadian goods, citing a tentative deal reached with Prime Minister Mark Carney.

Business & Earnings

Retail earnings delivered a stark divergence of consumer trends, while blockbuster artificial intelligence transactions dominated tech sector headlines. Target advanced 5% midday after hiking its full-year guidance and cheering a major turnaround under CEO Michael Fiddelke, boosted by a massive $752 million tariff refund, whereas rival Lowe’s missed quarterly revenue targets and lowered its outlook to the bottom end of its range due to persistent pressure on home-improvement spending. In technology, Marvell Technology surged 7% after securing an expansive custom-chip partnership that permits Google to acquire up to $12.2 billion in Marvell shares, heavily pressuring rival Broadcom’s stock which closed down 5%. On the fintech front, payments giant Stripe made a dramatic $7.5 billion push into AI infrastructure by acquiring startup model aggregator OpenRouter. In healthcare, a clinical breakthrough for an experimental melanoma vaccine sent Moderna stock skyrocketing over 120% midday, with Moderna’s CEO and Merck’s leadership praising the trial’s success in significantly extending recurrence-free survival.

Investing & Commentary

Widespread macroeconomic pessimism has depressed asset valuations, presenting attractive entry points for disciplined, long-term investors. Jim Cramer argued that the market is excessively bearish and recommended buying Target on any near-term pullbacks, while advising accumulation of data-center memory leader Micron to ride the ongoing AI infrastructure wave. Morgan Stanley upgraded Honeywell Aerospace to Overweight, arguing that its recent 24% decline makes it the cheapest large-cap aerospace name on a price-to-free-cash-flow basis. Additionally, Hightower’s Stephanie Link initiated a position in Timken, calling the industrial bearing manufacturer a heavily discounted, under-the-radar play on the robotics and automation market.

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📊 I can map out and chart the yield fluctuations of the 10-year and 30-year U.S. Treasuries compared against the S&P 500 over the past month so you can visually track how this yield-driven market is moving.