Stock Market Today: S&P 500 Rises, Nasdaq Gains 0.5% as Oil Fails

U.S. stocks opened higher Friday as another decline in oil prices gave Wall Street some relief from inflation concerns.

The S&P 500 rose 0.25% at the opening bell, while the Nasdaq Composite gained 0.39%. The Dow Jones Industrial Average also initially edged up about 0.09%, according to Reuters.

The move extends a dramatic reversal from earlier this week, when surging energy prices, rising bond yields and the Federal Reserve's rate hike pressured stocks.

Falling Oil Gives Stocks Another Boost

Oil remains one of Wall Street's biggest catalysts.

Brent crude fell 0.84% to $103.94 a barrel Friday as fears of major Saudi supply disruptions eased. Oil had approached $110 earlier this week, intensifying concerns that expensive energy could keep U.S. inflation elevated.

The retreat follows Thursday's strong rally, when the S&P 500 climbed 1.1%, the Nasdaq jumped 1.7% and the Dow gained 0.6% as both oil prices and Treasury yields fell.

That rebound was already visible in the previous Stock Market Today update, when tech stocks led the recovery after Wednesday's Fed-driven selloff.

But the 5% Yield Threat Isn't Gone

Oil is helping stocks, but the bond market remains a problem.

The 10-year Treasury yield moved toward 4.98% Friday, bringing it close to the psychologically important 5% level again. Higher yields increase borrowing costs and can put particular pressure on expensive technology stocks.

That risk has become harder to ignore after long-term Treasury yields recently surged to levels not seen in years, as explored in Coinpaper's Treasury yield analysis.

The Fed's latest rate increase adds another complication. Stocks initially sold off after the decision before rebounding as oil and yields retreated.