S&P 500 Rises Amid Falling Oil Prices and Soaring Yields

US stocks are rising on Friday after a volatile week that saw a surge in Treasury yields ripple through financial markets. The Dow is set to close for a fourth straight losing week, while the S&P 500 and Nasdaq are on track to gain.

Oil prices are falling on hopes of diplomatic progress between the US and Iran to reopen the Strait of Hormuz, which is helping to ease inflation concerns after an eventful week in the bond market.

US Treasury yields continue to climb at multi-decade highs, with the 10-year reaching 5.225% late on Thursday, a fresh 19-year high, and the 30-year reaching 5.502%, a level last seen in 2004.

The rise in yields was fuelled by hawkish comments from Fed officials, persistently high energy prices due to the Iran war and much stronger-than-expected PMI data, leading markets to price in a 70% probability of a rate hike in October.