Stocks Edge Higher as Treasury Yields Climb, Inflation Fears Mount

The US stock market edged higher on Friday, despite pressure from rising Treasury yields. The S&P 500 added 0.3% after flipping between modest gains and losses earlier in the day. It's coming off a three-day losing streak marred by big swings caused by rising bond yields, but it remains near its all-time high set last month.

The Dow Jones Industrial Average was up 221 points, or 0.4%, as of 11:30 a.m. Eastern time. The Nasdaq composite was 0.3% higher. A report on US consumer sentiment released shortly after trading began undercut the support for rising stock indexes because it helped push Treasury yields higher.

The University of Michigan reported that US consumers are bracing for inflation of 4.6% in the coming year, up from their forecast of 4% the month before. High inflation expectations could encourage behavior that leads to a vicious cycle, making the cost of living spiral even higher.

Nvidia reversed an early gain and dipped 0.1%, while Akamai Technologies rose 7% after announcing an $11.6 billion agreement with Anthropic. Costco Wholesale added 2.4% after reporting a stronger profit for the latest quarter than analysts expected.