U.S. markets settled higher on Wednesday as bond yields fell following the Treasury Department’s announcement of an increased buyback operation for longer-term debt. Traders took support with the Energy Information Administration (EIA) released a report showing US crude inventories rose by 4.405 million barrels to 428.8 million barrels in the week ended August 14, marking a third consecutive weekly increase. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.314 million barrels in the week. Refinery crude runs rose by 216,000 barrels per day. However, gains remained capped as traders stayed cautious after minutes from the U.S. Federal Reserve’s July meeting showed deepening concern about inflation, with several policymakers prepared to raise interest rates. Many said a rate hike would be needed if inflation does not decline to the U.S. central bank’s 2% target.
On the sectoral front, gold stocks moved sharply higher along with the price of the precious metal, with the NYSE Arca Gold Bugs Index up by 9.3 percent to reach its best closing level in three months. Substantial strength was also visible among biotechnology stocks, as reflected by the 4.2 percent spike by the NYSE Arca Biotechnology Index.
Nasdaq increased 41.37 points or 0.16 percent to 26,331.09, S&P 500 rose 16.22 points or 0.21 percent to 7,707.98 and Dow Jones Industrial Average was up by 119.65 points or 0.22 percent to 53,463.05.
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