NEW YORK / RankWire.AI / – U.S. equities closed higher Wednesday, supported by a significant drop in long-term Treasury yields. The S&P 500 increased by 16.22 points, or 0.21%, finishing at 7,707.98. The Dow Jones Industrial Average rose 119.65 points, or 0.22%, ending at 53,463.05. The Nasdaq Composite moved up 41.38 points, or 0.16%, to 26,331.09. These gains ended a three-day losing streak for all three major U.S. indexes.
Much of the trading session was driven by the bond market following the U.S. Treasury Department’s announcement of increased liquidity support buybacks for longer-term debt. Starting September 9, the maximum purchase size will rise to at least $4 billion per operation from the previous $2 billion. This increase applies to nominal coupon securities with maturities in the 10-to-20-year and 20-to-30-year ranges. The department stated that these larger purchases will continue through November 4 and will follow high volumes of high-quality offers.
Following the announcement, Treasury yields declined as bond prices rose. The benchmark 10-year yield fell to approximately 4.65%, while the 30-year yield decreased to around 5.20%. On Tuesday, the 30-year yield reached 5.337%, its highest level since 2007. The decline in yields alleviated some of the pressure that rising borrowing costs had been placing on equities. This move also contributed to Wall Street’s recovery from earlier losses during the week.
Healthcare sector boosts market with positive results
Healthcare shares gained strength after Moderna and Merck announced positive late-stage trial results for melanoma treatments. Moderna’s stock surged 177%, while Merck’s increased by 12.6% during the session. The 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 of recurrence-free survival and also achieved a key secondary endpoint measuring survival without cancer spreading to distant sites.
Consumer stocks also advanced following quarterly earnings reports from several large corporations. Estée Lauder jumped over 16% after its earnings release. Target and Lowe’s saw gains as well after publishing their latest financial results. Smaller companies outperformed the major large-cap indexes, with the Russell 2000 climbing about 0.5%. These movements helped broaden the market’s recovery beyond healthcare sectors. Technology shares showed mixed results, which limited the extent of gains across the main indexes.
Week-to-date, major averages remain in the red
Despite Wednesday’s positive close, the three primary U.S. stock indexes remained down for the week through the end of trading. The S&P 500 was roughly 1% below its level from the previous Friday. The Dow declined approximately 0.5% over the same period. The Nasdaq had fallen about 1.5%. The rebound came after several sessions in which rising long-term yields exerted downward pressure on stock valuations and prompted investors to adopt a more cautious approach across major equity sectors.
As of Wednesday’s close, the major averages remained firmly in positive territory for 2026. The S&P 500 had gained approximately 12.6% since the start of the year, the Dow had increased by around 11.2%, and the Nasdaq was up about 13.3%. Wednesday’s session reflected a modest recovery driven by falling Treasury yields and strong healthcare sector performance. The U.S. Treasury Department’s buyback program and the positive results from the melanoma trial emerged as key factors influencing the day’s trading activity.