NEW YORK / RankWire.AI / – U.S. equities closed higher on Wednesday, buoyed by a notable decline in long-term Treasury yields that boosted market sentiment. The S&P 500 increased by 16.22 points, or 0.21%, finishing at 7,707.98. The Dow Jones Industrial Average rose by 119.65 points, or 0.22%, ending at 53,463.05. The Nasdaq Composite gained 41.38 points, or 0.16%, to close at 26,331.09. These gains marked the end of a three-day losing streak for all three principal U.S. indexes.
Much of the session’s momentum was driven by developments in the bond market following the U.S. Treasury Department’s announcement of increased liquidity support through larger buybacks of longer-dated debt. Starting September 9, the maximum purchase amount will increase to at least $4 billion per operation from $2 billion. This change affects nominal coupon securities with maturities ranging from 10 to 20 years and 20 to 30 years. The department indicated that these larger purchases will continue through November 4, following strong volumes of high-quality offers.
In response to the announcement, Treasury yields declined as bond prices moved higher, with the benchmark 10-year yield falling to approximately 4.65% and the 30-year yield decreasing to about 5.20%. On Tuesday, the 30-year yield had reached 5.337%, marking its highest level since 2007. The decrease in yields eased some of the pressure on equities caused by rising borrowing costs, contributing to Wall Street’s recovery from earlier-week losses.
Healthcare Sector Boosts Market Sentiment
Following positive late-stage trial results from Moderna and Merck, healthcare stocks experienced notable gains, further supporting the market. Moderna shares surged by 177%, while Merck increased by 12.6% during trading. The companies reported results from their Phase 3 INTerpath-001 trial, which tested intismeran autogene combined with Keytruda after surgery for patients with high-risk melanoma. The trial successfully met its primary endpoint of recurrence-free survival and also achieved a key secondary endpoint, indicating the cancer’s non-spread to distant parts of the body.
In addition, consumer sector stocks gained strength after several major corporations announced quarterly earnings. Estée Lauder rose more than 16% following its earnings report. Both Target and Lowe’s also saw increases after releasing their latest financial results. Smaller-cap stocks outperformed larger indexes, with the Russell 2000 climbing approximately 0.5%. These movements helped extend the market’s recovery beyond the healthcare sector. Technology stocks showed mixed performance, which limited the overall gains in the major indexes.
Weekly Performance Still Down Despite Wednesday’s Rally
Despite the positive turn on Wednesday, the three main U.S. stock indexes remained lower for the week through the close. The S&P 500 was roughly 1% below its level from the previous Friday. The Dow declined about 0.5% over the same period, while the Nasdaq dropped approximately 1.5%. The rebound came after several sessions where rising long-term yields had pressured stock valuations, prompting investors to adopt a more cautious approach across major equity sectors.
As of Wednesday’s close, the major averages remained strongly positive for 2026. The S&P 500 had gained around 12.6% since January 1, while the Dow had increased approximately 11.2%, and the Nasdaq was up about 13.3%. The modest rally reflected a recovery driven by lower Treasury yields and significant healthcare sector gains. The U.S. Treasury Department’s buyback move and the positive melanoma trial results stood out as key influences on the market during the trading day.