US stocks open higher, Treasury yields recover amid rising inflation

By Ovunc Kutlu

ANKARA (AA) - US stocks opened higher on Thursday, while Treasury yields gained after inflation data came higher than market estimates.

The yield on the 10-year US Treasury note recovered from its lowest level in three months by rising 1.8% to 1.516% at 9.37 a.m. EDT (1337GMT).

The surge came after consumer prices rose 5% in May from the same month a year ago, marking its largest 12-month increase since August 2008, according to the Labor Department.

While rising inflation may bring the Federal Reserve signal next Wednesday a rate hike before 2023, investors have maintained their strong risk appetite.

The Dow Jones soared 285, or 0.8%, to 34,732 as IBM shares climbed to their highest in a year with $152.80.

The S&P 500 added 28 points to 4,247 with electric carmaker Tesla adding 1.7%. The Nasdaq increased by 88, or 0.6%, to 14,000.

Oil majors ExxonMobil, Chevron and ConocoPhillips each added over 2% as oil prices gained almost 1%. Brent crude was at $72.84 per barrel at the time, while the US' West Texas Intermediate was at $70.56.