U.S. Stocks Approach Records as Yields Ease

U.S. equities rose on Monday, pushing the S&P 500 (SPX) to within 0.9% of its all-time high set last month. The index was up about 1% in late-morning trading, supported by a broad move higher across sectors. The Dow Jones Industrial Average (DJIA) gained 193 points, or about 0.4%, while the tech-heavy Nasdaq composite outperformed with a rise of about 1.6%.

The gains came after a volatile stretch in financial markets, with investors responding to changing conditions in energy and bond markets. As of 11:30 a.m. Eastern time, all three major benchmarks were on track to extend recent advances and move closer to prior highs.

Energy markets provided a tailwind to stocks as oil prices eased from last week’s levels. Brent crude (UKOIL) fell roughly 3.4% to $100.29 a barrel after having touched a near-$110 peak last week. The decline reduced some of the immediate pressure that higher energy costs can place on corporate margins and consumer spending.

Despite the pullback in crude, gasoline prices for U.S. consumers remained elevated. The national average price for a gallon of regular gasoline stood at about $4.48, up from roughly $4.32 a week earlier and $3.18 a year ago. The persistence of higher pump prices contrasts with the moderation seen in benchmark crude.

The bond market also shifted in a direction supportive of equities. The yield on the 10-year U.S. Treasury eased to about 4.96% from 5.01% late Friday, after having moved above 5% last week. The move lower in yields helped alleviate some of the pressure that higher borrowing costs can exert on stocks, particularly in interest-rate-sensitive sectors.

The retreat kept the 10-year yield just below the 5% threshold that had drawn heightened attention from investors. The adjustment in yields, alongside the easing in oil prices, contributed to a more favorable backdrop for risk assets during Monday’s session.

Technology and cryptocurrency-related stocks were among the notable movers. Advanced Micro Devices (AMD) rallied about 9.4% and was positioned to potentially finish the day with a market value above $1 trillion. Nvidia (NVDA) also advanced, gaining about 1.2% and adding to the sector’s positive tone.

Crypto-exposed companies tracked a rebound in digital assets. Bitcoin’s (BTCUSD) price moved back above $85,000, and shares of cryptocurrency platform Coinbase Global (COIN) climbed about 5.2%. Trading app Robinhood Markets (HOOD) also rose, gaining about 3.2% in late-morning activity as investors rotated into risk-sensitive names.