NEW YORK / RankWire.AI / – A boost in U.S. stocks on Wednesday was driven by a sharp drop in long-term Treasury yields, which supported equity markets. The S&P 500 increased by 16.22 points, or 0.21%, closing at 7,707.98. The Dow Jones Industrial Average added 119.65 points, or 0.22%, ending at 53,463.05. The Nasdaq Composite gained 41.38 points, or 0.16%, to finish at 26,331.09. These gains marked the end of a three-session losing streak for all three major U.S. indexes.
Much of the trading session was influenced by the bond market following the U.S. Treasury Department‘s announcement of increased liquidity support buybacks for longer-dated debt. Starting September 9, the maximum purchase amount will rise to at least $4 billion per operation from $2 billion. This increase applies to 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 and are a response to 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%, while the 30-year yield decreased to around 5.20%. On Tuesday, the 30-year yield reached 5.337%, its highest level since 2007. The decline in yields eased some of the pressure caused by higher borrowing costs on equities, helping Wall Street recover from earlier losses during the week.
Healthcare Sector Boosts Market Sentiment
Healthcare stocks gained ground after Moderna and Merck announced positive late-stage trial results for melanoma treatment. Moderna’s shares surged by 177%, while Merck’s shares increased by 12.6% during the trading session. The Phase 3 INTerpath-001 trial evaluated 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 related to survival without cancer spreading to distant areas.
Several major consumer brands also posted gains following quarterly earnings reports. Estée Lauder saw its shares jump more than 16% after releasing its financial results. Target and Lowe’s experienced rises as well, buoyed by their latest earnings reports. Smaller-cap stocks outperformed the large-cap indexes, with the Russell 2000 advancing roughly 0.5%. These movements helped extend the market’s recovery beyond the healthcare sector. Technology shares presented mixed results, which limited the overall gains in the main indexes.
Major Market Indices Still Down for the Week
Despite Wednesday’s positive session, the three primary U.S. stock indexes remained in the red for the week through close. The S&P 500 was roughly 1% below its level from last Friday. The Dow declined about 0.5% over the same period. The Nasdaq had fallen approximately 1.5%. The rebound came after several days during which rising long-term yields put downward pressure on stock valuations and prompted investors to adopt a more cautious approach across major sectors.
Following Wednesday’s rally, the major averages remained firmly in positive territory for 2026. The S&P 500 had gained around 12.6% since the start of the year, with the Dow up approximately 11.2%, and the Nasdaq increasing about 13.3%. The session represented a modest recovery on Wall Street, aided by lower Treasury yields and robust healthcare sector gains. The U.S. Treasury Department’s buyback plan and the positive melanoma trial results were among the key factors driving market sentiment during trading hours.