Stocks move higher, Bank of England moves to buy bonds to calm market

Yahoo Finance Live breaks down the latest action occurring in the English bond market while U.S. markets seek to snap a six-day losing streak.

Video Transcript

RACHELLE AKUFFO: Now let's also get you up to speed with what we're seeing on the UK bond market. These gilts, or bonds, issued by the British government, now they jumped this morning before the 10-year sank back below 4%. Now investors were dumping those bonds in response to the Bank of England halting its planned gilt selling and pledging, instead, to buy $69 billion of long dated gilts. Now that was in an effort to try and calm markets.

Now the BOE also warned that if market dysfunction continues, quote, "there would be a material risk to UK financial stability, and this would lead to an unwarranted tightening of financial conditions and a reduction of the flow of credit to the real economy." Now this comes after the fiscal package laid out by UK finance minister Kwasi Kwarteng included $45 billion worth of tax cuts funded by borrowing, and that sparked the worst selloff in decades. Well, let's break some of this down now with our next guest. Let's get up to speed, though, first with how US markets, of course, are reacting to all this, Seana.

SEANA SMITH: Rachelle, you mentioned there off the top, all three of the major averages are firmly in the green. The Dow up nearly 500 points. We can put up the big board there. The NASDAQ back above 11,000, S&P above 3,700. You can see the Dow now up 505 points. In terms of the sector action, all 11 of the S&P sectors moving to the upside. Energy by far the leader here, with XLE up just nearly 4%. Crude, of course, popping 4%, settling above 82. So, again, all 11 of the S&P sectors moving to the upside here this afternoon, the gains being led by energy.