NEW YORK / RankWire.AI / – U.S. equities closed higher on Wednesday, supported by a significant drop in long-term Treasury yields. The S&P 500 added 16.22 points, or 0.21%, finishing at 7,707.98. The Dow Jones Industrial Average increased by 119.65 points, or 0.22%, to end at 53,463.05. The Nasdaq Composite went up by 41.38 points, or 0.16%, closing at 26,331.09. This marked the end of a three-day losing streak for all three major U.S. indexes.
Much of the trading session was driven by movements in the bond market after the U.S. Treasury Department announced increased liquidity support buybacks for longer-dated debt. Starting September 9, the maximum purchase size will rise to at least $4 billion per operation, up from $2 billion. This change applies to nominal coupon securities with maturities between 10-to-20 years and 20-to-30 years. The department stated these larger purchases will continue through November 4 and follow strong volumes of high-quality offers.
Following the announcement, Treasury yields declined as bond prices climbed. The benchmark 10-year yield fell to about 4.65%, while the 30-year yield dropped to roughly 5.20%. The 30-year yield had reached 5.337% on Tuesday, its highest since 2007. The decrease in yields eased some pressure caused by rising borrowing costs, which had weighed on stocks. It also helped Wall Street recover from earlier losses this week.
Healthcare Rally Boosts Market Confidence
Healthcare stocks gained momentum after Moderna and Merck announced positive late-stage results from a melanoma trial. Moderna shares surged 177%, while Merck increased by 12.6% during trading. Their Phase 3 INTerpath-001 trial tested intismeran autogene combined with Keytruda after surgery for patients with high-risk melanoma. The trial met its primary endpoint for recurrence-free survival and also achieved a key secondary endpoint, which measured cancer spread to distant parts of the body.
Consumer stocks also advanced following earnings reports from several major companies. Estée Lauder jumped over 16% after releasing its quarterly results. Target and Lowe’s also saw gains after publishing their latest financial data. Smaller-cap stocks outperformed the large indexes, with the Russell 2000 rising about 0.5%. These moves helped broaden the recovery beyond healthcare. Technology shares showed mixed results, limiting overall gains in the major indices.
Weekly Performance Still Lower Despite Wednesday’s Rise
Despite the gains on Wednesday, all three main U.S. stock indexes remained down for the week. The Nasdaq fell about 1.5%, while the S&P 500 was roughly 1% below its previous Friday level. The Dow declined around 0.5% over the same period. The rebound came after several sessions in which rising long-term yields negatively impacted stock valuations and caused investors to adopt a more cautious approach across various sectors.
Despite the weekly dip, major averages showed positive performance for 2026 after Wednesday’s close. The S&P 500 has gained about 12.6% since the start of the year. The Dow has increased roughly 11.2%, and the Nasdaq is up about 13.3%. Wednesday’s session marked a modest rebound, driven by falling Treasury yields and strong gains in healthcare. The U.S. Treasury Department’s buyback program and positive melanoma trial results were key factors influencing the market during trading.