US open: Markets rebound at the bell as falling oil, softer yields lift sentiment

(Sharecast News) - Major indices were in the green early on Friday as both oil prices and Treasury yields headed south.

As of 1525 BST, the Dow Jones Industrial Average was up 0.36% at 51,535.10, while the S&P 500 advanced 0.27% to 7,725.23 and the Nasdaq Composite came out of the gate 0.39% firmer at 27,043.16.

The Dow opened 185.12 points higher on Friday, more than reversing losses recorded in the previous session, as oil prices fell amid growing optimism that the Strait of Hormuz could be reopened, after Iran's foreign minister Abbas Araghchi said Tehran was prepared to restore passage through the waterway and restart nuclear talks with the US within seven days if Washington accepted its conditions. Reuters also reported that US and Iranian negotiators in New York were weighing a phased agreement to end the conflict in the Middle East.

West Texas Intermediate slipped 1.47% early on Friday to $93.22 a barrel, while Brent crude eased 1.29% to $105.22 a barrel, extending the previous session's pullback.

Traders were also watching Chinese president Xi Jinping's visit to the US, with US trade representative Jamieson Greer telling CNBC that "a lot more details" on negotiations between Washington and Beijing would be released on Monday. Earlier in the week, Treasury Secretary Scott Bessent said the two countries had agreed to extend their trade truce by two months.

Additionally, Treasuries were in focus again on Friday, with the yield on the benchmark 10year Treasury note down two basis points at 5.185%, after hitting its highest level since 2007 on Thursday, while the 30year note was little changed at 5.485%. The recent rise in yields followed hawkish remarks from Federal Reserve governor Michael Barr on thursday, persistently elevated energy prices linked to the Iran conflict, and a hotterthanexpected PMI print. According to CME's FedWatch tool, futures pricing now implies around a 68% chance of a rate hike in October. Higher benchmark yields also pushed up borrowing costs for households, with the 30year fixed mortgage rate rising to a two-year high of 7.03% - signalling further pressure on consumer financing ahead of the US midterm elections in November.

On the macro front, US durable goods orders were broadly flat in August, according to the Census Bureau, holding at $338.6bn after two consecutive monthly increases and defying expectations for a 0.4% decline. Excluding transportation, orders rose 0.3%, easing from July's 0.7% gain and coming in below the 0.6% forecast. Nondefence capital goods excluding aircraft - a key gauge of business investment - increased 1.6% month-on-month, accelerating from July's 0.6% rise and coming in comfortably ahead of the 0.5% consensus estimate, signalling firmer underlying demand.

Elsewhere, US consumer sentiment weakened in September, according to the University of Michigan, slipping to a fourmonth low and leaving the index about 15% below its January level, as households reported softer views on both current and yearahead personal finances and growing unease over persistent price pressures. The headline sentiment index fell to 48.1 from 51.7, current conditions eased to 50.9, and expectations dropped to 46.3, marking notable monthly and annual declines across all three measures.

No major corporate earnings were slated for release on Friday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Microsoft Corp. (MSFT) $517.21 4.66%

Intel Corp. (INTC) $125.04 2.07%

Cisco Systems Inc. (CSCO) $108.57 1.88%

Caterpillar Inc. (CAT) $820.45 1.65%

3M Co. (MMM) $168.71 1.05%

Boeing Co. (BA) $198.21 0.83%

Salesforce.Com Inc. (CRM) $237.52 0.47%

International Business Machines Corporation (CDI) (IBM) $227.79 0.46%

JP Morgan Chase & Co. (JPM) $339.75 0.45%

Home Depot Inc. (HD) $293.33 0.41%

Dow Jones - Fallers

Dow Chemical Co. (DOW) $27.90 -2.28%

Nike Inc. (NKE) $35.56 -1.38%

Visa Inc. (V) $365.34 -0.58%

Travelers Company Inc. (TRV) $360.77 -0.46%

Chevron Corp. (CVX) $204.78 -0.33%

Coca-Cola Co. (KO) $87.86 -0.27%

Walt Disney Co. (DIS) $105.21 -0.19%

Verizon Communications Inc. (VZ) $47.15 -0.16%

Goldman Sachs Group Inc. (GS) $920.57 -0.15%

Johnson & Johnson (JNJ) $269.91 -0.12%

S&P 500 - Risers

Cadence Design Systems Inc. (CDNS) $328.73 6.90%

Synopsys Inc. (SNPS) $438.08 6.70%

Illumina Inc. (ILMN) $271.90 5.29%

TripAdvisor Inc. (TRIP) $8.56 5.10%

Applied Materials Inc. (AMAT) $485.66 4.99%

Microsoft Corp. (MSFT) $516.11 4.66%

Micron Technology Inc. (MU) $1,087.20 4.19%

Lam Research Corp. (LRCX) $314.23 3.96%

Ipg Photonics Corp. (IPGP) $78.47 3.91%

Microchip Technology Inc. (MCHP) $77.06 3.88%

S&P 500 - Fallers

Gen Digital Inc. (GEN) $22.65 -12.90%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Paychex Inc. (PAYX) $100.97 -4.24%

Skyworks Solutions Inc. (SWKS) $87.42 -4.22%

Comcast Corp. (CMCSA) $21.60 -4.00%

Intuit Inc. (INTU) $275.82 -3.72%

Monster Beverage Corp (MNST) $42.26 -3.59%

Equity Residential (EQR) $63.66 -3.50%

Qorvo, Inc. (QRVO) $115.80 -3.21%

Valero Energy Corp. (VLO) $371.86 -2.91%

Nasdaq 100 - Risers

Cadence Design Systems Inc. (CDNS) $328.73 6.90%

Synopsys Inc. (SNPS) $438.08 6.70%

Illumina Inc. (ILMN) $271.90 5.29%

Applied Materials Inc. (AMAT) $485.66 4.99%

Microsoft Corp. (MSFT) $516.11 4.66%

Micron Technology Inc. (MU) $1,087.20 4.35%

Lam Research Corp. (LRCX) $314.23 3.96%

Microchip Technology Inc. (MCHP) $77.06 3.88%

Texas Instruments Inc (TXN) $277.53 3.29%

KLA-Tencor Corp. (KLAC) $189.29 3.28%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Gen Digital Inc. (GEN) $22.65 -12.90%

Paychex Inc. (PAYX) $100.97 -4.24%

Skyworks Solutions Inc. (SWKS) $87.42 -4.22%

Comcast Corp. (CMCSA) $21.60 -4.00%

Intuit Inc. (INTU) $275.82 -3.72%

Monster Beverage Corp (MNST) $42.26 -3.59%

NetEase Inc. Ads (NTES) $114.89 -3.21%

Mercadolibre Inc. (MELI) $1,732.83 -3.09%

Check Point Software Technologies Ltd. (CHKP) $136.00 -2.90%