S&P 500, Nasdaq Gain at Open as Investors Weigh Falling Oil Against Rising Yields

U.S. stocks opened mixed on Friday, with the S&P 500 and Nasdaq Composite posting early gains while the Dow Jones Industrial Average remained little changed. Investors are weighing the positive impact of lower oil prices against pressure from rising Treasury yields.

Friday's Opening Bell

At the start of the trading session on September 18, the major U.S. equity indexes showed divergent performance, according to a report from Reuters. The technology-focused Nasdaq led the gains.

• The S&P 500 rose 19.4 points, or 0.25%, to 7,657.17.
• The Nasdaq Composite gained 103.8 points, or 0.39%, to 26,522.09.
• The Dow Jones Industrial Average was nearly flat, rising 48.7 points, or 0.09%, to 51,826.78.

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Conflicting Market Signals

The market's early moves reflect a classic tug-of-war between key economic indicators. A slight dip in Brent crude oil futures provided a tailwind for equities, as lower energy costs can help ease inflationary pressures and reduce expenses for businesses and consumers.

However, this positive sentiment was tempered by a simultaneous increase in government bond yields. The yield on the benchmark 10-year U.S. Treasury note climbed toward 5.00%. Higher yields can be a headwind for stocks, as they increase borrowing costs for companies and make safer government bonds a more attractive alternative for investors.