NEW YORK / RankWire.AI / – U.S. markets closed higher on Wednesday, driven largely by a significant decline in long-term Treasury yields that boosted investor confidence. The S&P 500 increased by 16.22 points, or 0.21%, ending the session at 7,707.98. The Dow Jones Industrial Average added 119.65 points, or 0.22%, finishing at 53,463.05. Meanwhile, the Nasdaq Composite went up by 41.38 points, or 0.16%, to settle at 26,331.09. This upward movement ended a three-day losing streak across all three major U.S. indices.
Much of the trading session was influenced by the bond market, after the U.S. Treasury Department announced plans for increased liquidity support through larger buybacks of longer-dated debt. Starting September 9, the maximum purchase amount per operation will increase from $2 billion to at least $4 billion. This adjustment 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 and follow strong volumes of high-quality offers.
Following the announcement, Treasury yields declined as bond prices moved upward. The benchmark 10-year yield fell to approximately 4.65%, and the 30-year yield decreased to around 5.20%. The 30-year yield had reached 5.337% on Tuesday, marking its highest level since 2007. The drop in yields alleviated some of the pressure that higher borrowing costs had been placing on stocks. This shift also contributed to Wall Street’s recovery from earlier losses during the week.
Healthcare Rally Boosts Market Sentiment
Shares in the healthcare sector gained ground after Moderna and Merck announced promising late-stage trial results for melanoma. Moderna’s stock surged by 177%, while Merck’s rose by 12.6% during trading hours. The 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, demonstrating improved recurrence-free survival, and also achieved a key secondary endpoint, showing no cancer spread to distant sites.
Consumer-related stocks also saw gains after several major companies reported their quarterly earnings. Estée Lauder rose over 16% after releasing its earnings results. Target and Lowe’s also saw increases following their latest financial disclosures. Smaller-cap stocks outperformed the large-cap indexes, with the Russell 2000 gaining roughly 0.5%. These movements helped extend the market’s recovery beyond healthcare shares. Technology stocks delivered mixed results, which limited the overall gains in the main indices.
Major Averages Still Down for the Week
Despite Wednesday’s positive session, the primary U.S. stock indices remained lower for the week ending on that day. The S&P 500 was approximately 1% below its level from the previous Friday. The Dow was roughly 0.5% lower over the same period. The Nasdaq declined about 1.5%. The rebound was seen as a response to several sessions during which rising long-term yields had negatively impacted stock valuations, prompting investors to adopt a more cautious approach across major sectors.
By the close on Wednesday, the major averages remained significantly higher for 2026. The S&P 500 had gained roughly 12.6% since the start of the year, while the Dow increased by around 11.2%, and the Nasdaq was up about 13.3%. Wednesday’s gains reflected a modest rebound on Wall Street, fueled by declining Treasury yields and robust healthcare sector performances. The U.S. Treasury Department’s buyback initiatives and the positive melanoma trial results served as key drivers of market activity during the trading day.