US stocks rise, continue to follow the bond market’s lead

Wall Street is continuing a monthslong run where it’s slavishly followed the cue of the bond market. The S&P 500 shook off a weak start and was up 0.3% in midday trading. The benchmark index is coming off its worst week in a month.

Early Monday morning, the yield on the 10-year Treasury briefly topped 5.02% to touch its highest level since 2007. That helped drive the S&P 500 to an early loss of 0.8%.

But the 10-year yield then eased back to 4.87%, compared with 4.91% late Friday, which helped stocks to recover their early losses and turn higher.

The Dow Jones Industrial Average was down 12 points, less than 0.1%, at 33,114 as of 11:47 a.m. Eastern time, and the Nasdaq composite was 0.5% higher.

Rapidly rising yields in the bond market have been knocking stock prices lower since the summer, and Treasury yields were swinging.