NEW YORK / RankWire.AI / – U.S. stocks closed slightly higher on Wednesday, supported by a sharp decline in long-term Treasury yields. The S&P 500 increased by 16.22 points, or 0.21%, to reach 7,707.98, breaking a three-day losing streak. The Dow Jones Industrial Average advanced 119.65 points, or 0.22%, finishing at 53,463.05. The Nasdaq Composite added 41.38 points, or 0.16%, ending at 26,331.09. The decrease in government bond yields helped the major indexes recover after several sessions of pressure caused by rising borrowing costs.
Bond prices rose following the U.S. Treasury Department’s announcement of increased liquidity support buybacks for longer-dated government debt. Beginning September 9, the maximum purchase amount will go from $2 billion to at least $4 billion per operation. This change applies to nominal coupon securities in the 10-to-20-year and 20-to-30-year maturity segments. The enhanced amounts will be maintained through November 4. The department indicated that strong demand for high-quality offers prompted the decision to expand liquidity operations in those sectors.
Following the announcement, Treasury yields declined, reversing part of the recent increase in long-term borrowing costs. The 10-year Treasury yield dropped to approximately 4.65%, while the 30-year yield decreased to about 5.20%. On Tuesday, the 30-year yield had reached 5.337%, its highest point since 2007. Since bond yields move inversely to prices, increased demand for government debt pushed yields lower. This retreat alleviated some of the pressure from the recent selloff in longer-term government bonds.
Healthcare stocks bolster market gains
Healthcare equities contributed to Wednesday’s positive momentum as several pharmaceutical companies posted significant gains. Moderna shares surged 177%, while Merck’s stock rose 12.6% after both firms announced promising results from a Phase 3 melanoma trial. The INTerpath-001 study tested a personalized mRNA therapy, intismeran autogene, combined with 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.
The rally in healthcare stocks helped offset mixed performance elsewhere, especially in the technology sector. Consumer-related shares also contributed after several prominent companies released quarterly earnings. Estée Lauder’s stock climbed more than 16% after its earnings report, adding to gains among consumer stocks. Target and Lowe’s also advanced after publishing their latest financial results. Smaller companies outperformed large-cap indexes generally, with the Russell 2000 rising approximately 0.5% as the broader market recovered.
Major indices end three-day losing streak
Wednesday’s gains marked the end of three consecutive losing sessions for the S&P 500, Dow, and Nasdaq. The rebound followed earlier declines driven by higher long-term yields. Despite Wednesday’s recovery, the main indexes still closed the week lower. The S&P 500 was roughly 1% below the level seen last Friday, while the Dow declined about 0.5% and the Nasdaq remained approximately 1.5% lower.
Looking at the year-to-date performance, the broader indices continued to show gains despite the recent dip and bond market pressures. As of Wednesday’s close, the S&P 500 had increased by about 12.6% since the start of the year. The Dow was up roughly 11.2%, and the Nasdaq led with a gain of approximately 13.3%, reflecting its stronger year-to-date performance. Wednesday’s session thus brought a modest recovery for Wall Street, driven by falling Treasury yields and positive healthcare earnings that lifted all three major U.S. stock indexes.