NEW YORK / RankWire.AI / – U.S. stocks finished higher on Wednesday, supported by a significant drop in long-term Treasury yields. The S&P 500 added 16.22 points, or 0.21%, closing at 7,707.98. The Dow Jones Industrial Average increased by 119.65 points, or 0.22%, to 53,463.05. The Nasdaq Composite went up by 41.38 points, or 0.16%, reaching 26,331.09. These gains marked the end of a three-session losing streak for all three major U.S. indices.
A substantial part of the session’s momentum 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 be raised to at least $4 billion per operation from $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 indicated that these larger purchases will continue through November 4, following strong 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 about 5.20%. On Tuesday, the 30-year yield reached 5.337%, its highest point since 2007. The decline in yields eased some of the pressure that higher borrowing costs had exerted on equities. This movement also contributed to Wall Street’s recovery from earlier losses in the week.
Healthcare Sector’s Rally Supports Market Momentum
Healthcare stocks gained momentum after Moderna and Merck announced positive results from late-stage melanoma studies. Moderna shares soared by 177%, while Merck increased by 12.6% during the trading session. The Phase 3 INTerpath-001 trial tested intismeran autogene with Keytruda after surgery for patients with high-risk melanoma. The study achieved its primary endpoint of recurrence-free survival and also met a key secondary endpoint, which evaluated survival without cancer spreading to distant sites.
Additional gains were seen in consumer stocks following quarterly reports from several large companies. Estée Lauder jumped more than 16% after releasing its earnings results. Target and Lowe’s also saw increases after publishing their latest financial data. Smaller-cap stocks outperformed the major large-cap indices, with the Russell 2000 rising about 0.5%. These movements helped diversify the market’s rebound beyond healthcare. Technology shares delivered mixed results, limiting the overall gains in the major indexes.
Week-to-Date Performance Remains Negative Despite Wednesday’s Rise
Despite the rally on Wednesday, the three primary U.S. stock indexes remained in the red 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. The Nasdaq had fallen approximately 1.5%. This rebound was driven by several sessions in which rising long-term yields weighed on stock valuations and prompted investors to adopt a more cautious approach across key sectors.
As of Wednesday’s close, the major averages remained significantly higher for 2026. The S&P 500 had gained about 12.6% since the start of the year, while the Dow was up approximately 11.2%. The Nasdaq experienced a roughly 13.3% increase. Wednesday’s session reflected a modest recovery across Wall Street, driven mainly by declining Treasury yields and notable healthcare sector gains. The U.S. Treasury Department’s buyback program and the positive results from the melanoma trials were among the clearest factors influencing market movements during trading hours.