NEW YORK / RankWire.AI / – U.S. stocks ended Wednesday on a higher note, supported by a notable decrease in long-term Treasury yields. The S&P 500 rose by 16.22 points, or 0.21%, closing at 7,707.98. The Dow Jones Industrial Average increased by 119.65 points, or 0.22%, finishing at 53,463.05. The Nasdaq Composite moved up 41.38 points, or 0.16%, to reach 26,331.09. This upward shift ended a three-day losing streak across all three major U.S. indices.
The session was largely driven by bond market activity following the U.S. Treasury Department’s announcement of increased liquidity support buybacks for longer-dated 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 within the 10-to-20-year and 20-to-30-year maturity ranges. The department stated these larger purchases would continue through November 4, following strong volumes of high-quality offers.
Following the announcement, Treasury yields declined as bond prices gained. The benchmark 10-year yield dropped to around 4.65%, and the 30-year yield fell to roughly 5.20%. The 30-year yield had previously climbed to 5.337% on Tuesday, reaching its highest level since 2007. The decrease in yields alleviated some of the pressure higher borrowing costs had exerted on equities, helping Wall Street recover from earlier losses this week.
Healthcare Sector Rally Provides Additional Support
Shares in healthcare surged after Moderna and Merck released encouraging results from late-stage melanoma studies. Moderna’s stock jumped 177%, while Merck’s rose 12.6% during the trading session. Their Phase 3 INTerpath-001 trial evaluated intismeran autogene combined with Keytruda after surgery for high-risk melanoma patients. The trial achieved its primary endpoint of recurrence-free survival and also met a secondary endpoint measuring survival without cancer spread to distant areas.
Consumer stocks also advanced following quarterly results from major firms. Estée Lauder gained over 16% after its earnings report, while Target and Lowe’s also saw increases. Smaller-cap stocks outperformed large caps, with the Russell 2000 climbing about 0.5%. These gains helped extend the market’s recovery beyond healthcare. Technology shares showed mixed performance, limiting overall gains in the major indexes.
Major Indices Still Down for the Week
Despite Wednesday’s gains, the three primary U.S. stock indices remained lower for the week. The Nasdaq declined about 1.5%, with the S&P 500 approximately 1% below last Friday’s level. The Dow was down roughly 0.5% over the same period. The rebound followed several sessions during which rising long-term yields hurt stock valuations and encouraged more cautious investment across sectors.
By the close on Wednesday, the main averages remained in positive territory for 2026. The S&P 500 had increased about 12.6% since the start of the year, the Dow was up roughly 11.2%, and the Nasdaq gained around 13.3%. The session’s modest rebound was driven by falling Treasury yields and strong healthcare results, with the U.S. Treasury Department’s buyback announcement and melanoma trial success standing out as key market catalysts during trading hours.