Dow +166.05 at 31667.70, Nasdaq +164.52 at 11116.99, S&P +36.11 at 3833.52
The stock market opened on a decidedly upbeat note as Treasury yields continue to drop from overnight highs. The S&P 500 is comfortably above the 3,800 level.
The 10-yr note yield, at 4.23% overnight, is down 15 basis points to 4.07%. The 2-yr note yield, at 4.51% overnight, is down nine basis points to 4.40%.
The 10-yr gilt is reacting favorably to the new UK Prime Minister Sunak pledging to fix prior mistakes. The 10-yr gilt yield is down 16 basis points to 3.58%. The U.S. Dollar Index is also making big moves, down 1.0% to 110.91 with GBP/USD +1.8% to 1.1470.
Mega cap stocks are boosting index level performance. The Vanguard Mega Cap Growth ETF (MGK) is up 1.2% versus a 0.7% gain in the S&P 500.
All 11 S&P 500 sectors trade in positive territory, led by real estate (+2.1%) and consumer discretionary (+1.6%). Meanwhile, energy (+0.2%) shows the slimmest gain despite rising oil prices. WTI crude oil futures are up 1.1% to $85.58/bbl.