NEW YORK / RankWire.AI / – U.S. equities closed slightly higher on Wednesday, buoyed by a sharp decline in long-term Treasury yields. The S&P 500 increased by 16.22 points, or 0.21%, reaching 7,707.98 and breaking a three-day losing streak. The Dow Jones Industrial Average added 119.65 points, or 0.22%, finishing at 53,463.05. The Nasdaq Composite rose by 41.38 points, or 0.16%, ending at 26,331.09. The dip in government bond yields helped the major indices recover after recent pressure from rising borrowing costs.
The U.S. Treasury Department announced increased liquidity support buybacks for longer-dated government bonds, prompting bond prices to climb. Starting September 9, the maximum purchase size will jump from $2 billion to at least $4 billion per operation. This applies to nominal coupon securities in the 10-to-20-year and 20-to-30-year maturity categories. The higher amounts will remain in effect through November 4. The department cited strong high-quality offer volumes as the reason for expanding liquidity operations in these sectors.
Following the announcement, Treasury yields declined, reversing some of the recent upward trend in long-term borrowing costs. The 10-year Treasury yield dropped to about 4.65%, while the 30-year yield decreased to approximately 5.20%. Notably, the 30-year yield had reached 5.337% on Tuesday, its highest point since 2007. Since bond prices move inversely to yields, increased demand for government debt resulted in lower yields. This retreat alleviated some of the pressure that had been associated with the recent selloff in longer-term government bonds.
Healthcare Sector Boosts Market Performance
Healthcare stocks provided additional support during Wednesday’s trading, with several pharmaceutical firms posting significant gains. Moderna shares surged 177%, while Merck advanced 12.6% after both companies announced positive results from a Phase 3 melanoma trial. The INTerpath-001 study evaluated the personalized mRNA therapy intismeran autogene combined with Keytruda after surgical removal of high-risk melanoma. The trial met its primary endpoint for recurrence-free survival and also achieved a key secondary endpoint measuring survival without distant cancer spread.
This healthcare rally helped offset mixed performances elsewhere, particularly in the technology sector. Consumer stocks also contributed, as several major companies released quarterly earnings during the session. Estée Lauder jumped more than 16% following its earnings report, boosting consumer stock gains. Target and Lowe’s also saw upward movement after reporting their latest financial results. Smaller companies outperformed large-cap indexes, with the Russell 2000 gaining around 0.5% as the broader market rallied.
Major Indices End Three-Day Losing Streak
Wednesday’s gains marked the end of a three-session decline for the S&P 500, Dow, and Nasdaq. The rebound followed earlier-week pressure from rising long-term yields. Despite Wednesday’s positive turn, the main indexes still closed lower for the week, with the S&P 500 roughly 1% below last Friday’s level. The Dow declined about 0.5%, and the Nasdaq was down approximately 1.5% overall.
Year-to-date, the broader 2026 outlook remains optimistic despite this week’s dip and recent bond market turmoil. As of Wednesday’s close, the S&P 500 has gained roughly 12.6% since January 1, while the Dow has increased approximately 11.2%. The Nasdaq outperformed with a gain of about 13.3%, reflecting its stronger start to the year. Wednesday’s session thus represented a modest recovery for Wall Street, driven by lower Treasury yields and healthcare sector strength that lifted all three major U.S. stock indexes.