Dow, S&P 500 and Nasdaq open higher as Treasury yields fall and oil prices retreat

All three major US equity indices opened in the green on Monday as a pullback in Treasury yields and falling oil prices gave investors a reason to lighten up on the anxiety. Dow futures climbed roughly 0.4% ahead of the opening bell. The 10-year Treasury yield slipped to around 4.70%, down from 4.74% in the prior session. Lower yields make equities more attractive by comparison, and Monday’s price action reflected that calculus almost immediately. What happened in the prior session Friday’s close was a tale of two markets. The Dow Jones Industrial Average managed to grind out a 140.15-point gain, finishing at 53,417.16, good for a 0.26% advance. The S&P 500 was less fortunate, shedding 21.51 points to settle at 7,652.86, a 0.28% decline. The Nasdaq Composite took the hardest hit, falling 200.26 points (0.76%) to close at 25,980.19. Growth and tech stocks, which are particularly sensitive to rising borrowing costs, bore the brunt of the selling pressure as yields had been climbing in recent sessions. Treasury buybacks and the $40 trillion elephant Behind the yield decline sits a deliberate move by the US Treasury Department. The agency announced plans to increase buybacks of lon...