As tensions in the bond market eased, Wall Street opened higher; the Dow rose 240 points Investing.com

Jeffrey Smith

Investing.com-Supported by the return of the overbought bond market to normal conditions, the US stock market opened higher on Friday.

U.S. Treasury yields have been rising along the yield curve because people think this week’s growth scare has been excessive. Given the general lack of liquidity in recent days, the prospect of a large-scale Treasury auction next week has also restored some balance to the market, which has been dominated by Fed purchases. The rise in yields has supported financial stocks. Although there may be another set of strong performance at the beginning of the earnings season next Tuesday, financial stocks have depreciated this week.

As of 9:40 am Eastern Time (1340 GMT), the index rose 244 points, or 0.7%, to 34,666 points. The index rose 0.5%, but underperformed because of concerns about a new, wide-ranging executive order issued by President Joe Biden claiming to support consumers against large companies.

Biden’s latest executive order focuses on the need to promote competition. Although the return of Internet service provision and “net neutrality” plans dominates the headlines, the order also promises to make the situation more difficult for airlines, pharmacies, and medical product manufacturers.​​​​

However, the market’s reaction has no obvious pattern, which shows that many people want to know more details before drawing conclusions.