US stocks post early gains on oil dip; Treasury yields remain elevated
SPY•All three major US indexes were modestly higher as crude fell more than 1%, while the 10-year Treasury yield edged up to about 5.19%. Technology led S&P 500 sector gains, while energy stocks fell most.
1. Stocks rise as oil falls
All three major US indexes were modestly higher, with the S&P 500 and Nasdaq on track for weekly gains. The Dow was set to finish below the prior Friday’s close for a fourth straight week. Technology led S&P 500 sector gains, aided by chip stocks, while energy shares lagged as crude prices softened.
2. Yields and rate expectations
The 10-year Treasury yield edged up to about 5.19%, as long-dated yields moved beyond multi-year highs. Markets priced in a 66.4% probability of an October rate hike, up from 9.7% a month earlier.
3. Trade and economic data
A two-month extension of the tariff pause between the United States and China was the summit’s biggest achievement, while tariffs, rare earth supply and technology restrictions remained unresolved. August orders for core capital goods rose 1.6%, more than three times the increase analysts expected.
