Investing.com — U.S. stocks opened higher on Friday supported by a return to normal conditions in an overbought bond market.
Yields on U.S. Treasury bonds rose all along the yield curve, amid perceptions that this week’s growth scare had been overdone. The prospect of big Treasury bond auctions next week also restored some balance to a market that had been dominated by Federal Reserve buying amid a general lack of liquidity in recent days. The rise in yields supported financial stocks, which have cheapened this week despite the prospect of another strong set of results when earnings season kicks off next Tuesday. Bank of America (NYSE:BAC) stock and Citigroup (NYSE:C) stock rose 2.5%, while Goldman Sachs (NYSE:GS) stock rose 2.7%.
By 9:40 AM ET (1340 GMT), the Dow Jones Industrial Average was up 244 points, or 0.7%, at 34,666 points. The S&P 500 was up 0.5% but the Nasdaq Composite underperformed, against a backdrop of concern about a new and wide-ranging executive order from President Joe Biden claiming to champion the consumer against big business.
Biden’s latest executive order focuses on the need to promote competition. While Internet service provision and the planned return of ‘Net Neutrality’ garnered most of the headlines, the order also promised to make things tougher for airlines, drug stores and the makers of medical products.
Yet there was no obvious pattern to the market’s reaction, suggesting that many would like to see more detail before jumping to conclusions.