US stocks rise as oil and bond yields fall

US stock indices opened higher across the board on Monday, supported by falling oil prices and lower Treasury bond yields, which partially eased the pressures that markets faced last week.

The Dow Jones Industrial Average rose by about 307 points, or 0.6% , the S&P 500 climbed 0.6% , and the Nasdaq Composite outperformed with a gain of nearly 0.8% , as momentum returned to technology and artificial intelligence stocks.

The decline in oil prices is supporting risk appetite.

The improvement in stocks coincided with a clear drop in energy prices, with US crude falling by about 3% to $97.09 a barrel , while Brent fell by more than 3% to about $100.50 .

Despite ongoing geopolitical risks in the Middle East and threats to oil production and shipping, continued crude oil flows, better than the market feared, have helped to stabilize prices. The decline in oil prices is a positive factor for stocks, as it reduces concerns that the energy shock could trigger a new wave of inflation.

Bond yields decline after interest rate hike

The bond market also contributed to supporting stocks, with the yield on 10-year US Treasury bonds falling by more than 3 basis points to 4.957% , while the yield on 30-year bonds declined to around 5.294% .

This comes after the Federal Reserve raised interest rates last week for the first time in three years amid persistent inflation and rising energy prices.

The equation that investors are currently watching is clear: if oil remains at high levels for an extended period, it could boost inflation and push the Fed towards further tightening, while a continued decline in energy and yields could give stocks more room to rise.

Technology and artificial intelligence stocks are driving the moves.

Companies associated with artificial intelligence saw strong movements. Intel shares rose by more than 5% in pre-market trading , while Dell Technologies climbed by more than 2% and AMD by more than 3% .

Bitcoin and cryptocurrencies are booming

The appetite for risk extended to the cryptocurrency market, with Bitcoin rising by about 4% to $84,671 , after touching $85,229 during the session, its highest level since January .

The rise came after US regulatory steps eased some concerns related to the digital currency sector, in addition to short covering operations; data indicates that more than $250 million was liquidated from short positions on Bitcoin within 24 hours .

This was reflected in the sector-related stocks, with Coinbase, Circle and Strategy rising by about 5% in pre-market trading .

Strong movements in some stocks

Shares of Paramount and Warner Bros. Discovery saw gains of approximately 5.8% and 7% respectively on the back of developments related to the merger deal.

In contrast, Novo Nordisk's stock came under pressure and fell by as much as 7% , despite the company announcing long-term targets aimed at achieving more than 150 billion Danish kroner, or about $23 billion, from sales of drugs in development by 2035 .

Some Greenland-related stocks also recorded exceptional gains following the announcement of a US security agreement concerning the island.

Summary

Wall Street began the week on a positive note, buoyed by three supporting factors: lower oil prices, declining bond yields, and strong performance from technology and artificial intelligence stocks . However, energy prices remain the most sensitive factor for the markets, as a renewed rise could reignite inflationary pressures and reinforce expectations of continued monetary tightening.

Therefore, today’s rise reflects an improvement in risk appetite, but the direction of the market in the coming period will remain largely dependent on the trajectory of oil, inflation, bond yields and Federal Reserve policy .

The prices and percentage changes are:

US stock indices

European indices

Asian indices

Energy

digital currencies