NEW YORK / RankWire.AI / – Amid broader market movements, U.S. stocks closed higher Wednesday, supported by a significant decline in long-term Treasury yields. The S&P 500 increased by 16.22 points, or 0.21%, ending at 7,707.98. The Dow Jones Industrial Average added 119.65 points, or 0.22%, to close at 53,463.05. The Nasdaq Composite rose by 41.38 points, or 0.16%, finishing at 26,331.09. This upward move ended a three-day losing streak across all three major U.S. indexes.
Market sentiment was notably influenced by bond market activity following the U.S. Treasury Department’s announcement of increased liquidity 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 adjustment applies to nominal coupon securities within the 10-to-20-year and 20-to-30-year maturity brackets. The department indicated that these larger purchases will continue through November 4 and follow strong volumes of high-quality offers.
Following the announcement, Treasury yields declined as government bond prices gained. The benchmark 10-year yield decreased to approximately 4.65%, while the 30-year yield fell to around 5.20%. On Tuesday, the 30-year yield had climbed to 5.337%, its highest point since 2007. The drop in yields alleviated some of the pressure that rising borrowing costs had placed on equities, aiding Wall Street in bouncing back from earlier weekly losses.
Healthcare Sector Leads the Rally
Shares in healthcare companies gained momentum after Moderna and Merck reported positive late-stage trial results for melanoma. Moderna shares surged 177%, while Merck rose by 12.6% during trading hours. The Phase 3 INTerpath-001 trial tested 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 measuring the absence of cancer spread to distant sites.
Meanwhile, consumer stocks also experienced gains, buoyed by earnings reports from several major firms. Estée Lauder increased by more than 16% after its quarterly results were announced. Target and Lowe’s also saw rises following their latest financial disclosures. Smaller-cap stocks outperformed the large indexes, with the Russell 2000 climbing approximately 0.5%. These movements helped broaden the market’s recovery beyond the healthcare sector. Technology shares delivered mixed results, which limited the overall gains across major indexes.
Weekly Performance Remains Negative Despite Wednesday’s Rise
Although stocks moved higher on Wednesday, the main U.S. indexes still closed the week in the red. The S&P 500 was roughly 1% below its level from last Friday, while the Dow was down about 0.5%. The Nasdaq had declined by approximately 1.5%. The rebound was driven by several sessions in which rising long-term yields had put downward pressure on stock valuations, prompting investors to adopt a more cautious approach across major sectors.
Looking ahead, the major averages remained firmly positive for 2026 after Wednesday’s trading. The S&P 500 had gained around 12.6% since the start of the year, the Dow had increased about 11.2%, and the Nasdaq was up roughly 13.3%. Wednesday’s modest recovery was fueled by falling Treasury yields and strong gains in healthcare shares. Notably, the U.S. Treasury Department’s buyback plan and the positive melanoma trial results served as primary market catalysts during the trading session.