NEW YORK / RankWire.AI / – U.S. equities closed slightly higher on Wednesday as yields on long-term Treasuries decreased sharply. The S&P 500 increased by 16.22 points, or 0.21%, reaching 7,707.98 and ending a streak of three consecutive losses. The Dow Jones Industrial Average climbed 119.65 points, or 0.22%, closing at 53,463.05. The Nasdaq Composite gained 41.38 points, or 0.16%, ending the day at 26,331.09. Declining government bond yields helped major indexes recover after several sessions pressured by rising borrowing costs.
Bond prices rose after the U.S. Treasury Department announced increased liquidity support through larger buybacks of longer-dated government securities. Effective September 9, the maximum purchase size will grow from $2 billion to at least $4 billion per operation, covering nominal coupon securities in the 10-to-20-year and 20-to-30-year maturity sectors. These increased amounts will be maintained through November 4. The department stated that strong volumes of high-quality offers prompted the decision to expand liquidity operations in these sectors.
Following the announcement, Treasury yields declined, reversing part of the recent upward trend in long-term borrowing costs. The 10-year Treasury yield fell to approximately 4.65%, while the 30-year yield dropped to around 5.20%. The 30-year yield had hit 5.337% on Tuesday, its highest level since 2007. Since bond prices move inversely to yields, increased demand for government debt pushed yields lower, alleviating some of the pressure caused by the recent selloff in longer-term bonds.
Healthcare stocks bolster market recovery
During Wednesday’s session, healthcare equities offered additional support as several pharmaceutical companies reported notable gains. Shares of Moderna soared 177%, while Merck increased by 12.6% after announcing positive outcomes from a Phase 3 melanoma trial. The INTerpath-001 study tested personalized mRNA therapy intismeran autogene alongside Keytruda following 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 rally in healthcare helped offset mixed performance elsewhere, especially across parts of the technology sector. Consumer shares also contributed as several major companies released quarterly results during the session. Estée Lauder rose more than 16% after reporting earnings, adding to the gains seen among consumer stocks. Target and Lowe’s also moved higher after releasing their latest financial figures. Smaller-cap stocks outperformed large caps generally, with the Russell 2000 climbing roughly 0.5% as the broader market recovered.
Indexes end three-day losing streak
The gains on Wednesday marked the end of three straight losing sessions for the S&P 500, Dow, and Nasdaq. The rebound followed earlier declines driven by higher long-term yields. Despite Wednesday’s positive momentum, the major indexes still closed the week lower. The S&P 500 was about 1% below last Friday’s level, the Dow down approximately 0.5%, and the Nasdaq roughly 1.5% lower.
Year-to-date, the broader 2026 outlook remained optimistic despite this week’s setbacks and recent bond market pressures. As of Wednesday’s close, the S&P 500 had gained about 12.6% since the start of the year, while the Dow increased roughly 11.2%. The Nasdaq led with a gain of approximately 13.3%, reflecting its stronger performance earlier in the year. Wednesday’s session thus offered a modest rebound for Wall Street, supported by lower Treasury yields and healthcare gains that boosted all three major U.S. stock indexes.