NEW YORK / RankWire.AI / – U.S. stocks closed higher on Wednesday, buoyed by a notable decrease 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 close at 53,463.05. The Nasdaq Composite moved up 41.38 points, or 0.16%, ending at 26,331.09. This upward movement broke a three-session losing streak across all three primary U.S. indexes.
Much of the trading session was influenced by the bond market after the U.S. Treasury Department announced increased liquidity support through larger buybacks for longer-dated securities. Starting September 9, the maximum purchase size will rise to at least $4 billion per operation from $2 billion. This adjustment applies specifically to nominal coupon securities within the 10-to-20-year and 20-to-30-year maturity brackets. The department stated that these larger purchases would continue through November 4, following robust volumes of high-quality offers.
Following the announcement, Treasury yields declined as bond prices rose. The benchmark 10-year yield decreased to around 4.65%, and the 30-year yield dropped to roughly 5.20%. On Tuesday, the 30-year yield had climbed to 5.337%, marking its highest level since 2007. The fall in yields alleviated some of the pressure previously exerted by rising borrowing costs on equities. This shift also contributed to Wall Street’s recovery from earlier weekly losses.
Healthcare Sector Rally Bolsters Market Sentiment
Shares in healthcare gained strength after Moderna and Merck announced positive late-stage results from a melanoma clinical trial. Moderna’s stock surged 177%, while Merck increased by 12.6% during the session. Their Phase 3 INTerpath-001 trial evaluated intismeran autogene combined with Keytruda following surgery for patients with high-risk melanoma. The trial met its primary endpoint related to recurrence-free survival and also achieved a key secondary endpoint that measured survival without the cancer spreading to distant areas of the body.
Meanwhile, consumer stocks also saw gains following quarterly earnings reports from several major companies. Estée Lauder’s shares rose more than 16% after its earnings release. Target and Lowe’s also experienced upward movement after presenting their latest financial results. Smaller-cap stocks outperformed the large-cap indexes, with the Russell 2000 climbing approximately 0.5%. These movements contributed to broadening the market’s recovery beyond healthcare. Technology shares, however, showed mixed results, limiting the overall gains in the major indexes.
Major Stock Averages Remain Lower for the Week
Despite Wednesday’s gains, the three principal U.S. stock indexes stayed below their levels from the previous Friday. The S&P 500 was roughly 1% lower, while the Dow had fallen about 0.5%. The Nasdaq declined approximately 1.5%. This rebound followed several sessions in which rising long-term yields had negatively impacted stock valuations and prompted investors to adopt a more cautious approach across major sectors.
By the end of Wednesday, the major averages remained firmly positive for 2026. The S&P 500 had gained around 12.6% since the beginning of the year. The Dow had increased approximately 11.2%, and the Nasdaq was up about 13.3%. The session marked a modest recovery across Wall Street, driven by lower Treasury yields and strong gains in healthcare. The U.S. Treasury Department’s buyback announcement and the melanoma trial results emerged as some of the most significant market catalysts during trading hours.