LIVE MARKETS-US stocks post early gains on oil dip; Treasury yields remain elevated

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US STOCKS POST EARLY GAINS ON OIL DIP; TREASURY YIELDS REMAIN ELEVATED

Falling crude prices are helping investors remember AI on Friday, as investors prepare to sail into the weekend with the wind of a tech-led rally filling their sails.

All three major US equity indexes are modestly higher, and the S&P 500 .SPX and the Nasdaq .IXIC are on track to log weekly gains. The Dow .DJI, on the other hand, has set course to end below last Friday's close, marking its fourth straight week of losses.

On the sector level, tech .SPLRCT is leading the gainers, with an assist from chips .SOX, while energy stocks .SPNY are the clear losers, dragged down by softening crude prices.

Stocks have tended to move in opposition to oil prices lately, and the prospects of a US-Iran truce calmed supply worries, resulting in crude's downward move and an easing of inflation jitters.

Even so, long-dated US Treasury yields nudged beyond multi-year highs amid growing expectations that the Federal Reserve is far from finished raising interest rates.

Financial markets are currently pricing in a 66.4% probability that Warsh & Co. will follow its September hike with another one in October. One month ago, the likelihood of an October rate hike was 9.7%, according to CME's FedWatch tool.

Presidents Trump and Xi wrapped up their summit, which was long on ceremony and short on substance. A two-month extension to a tariff pause between the world's two largest economies stands as the summit's biggest achievement. Items looming large over the meeting, including tariffs, rare earth supply and technology restrictions, were left unresolved.

On the economic front, new orders for core capital goods, a barometer of corporate capex plans, jumped 1.6% in August, more than three times the increase analysts expected.

UMich's final take on September consumer sentiment is expected shortly.

Here's where things stood as of 09:46 a.m. EDT:

(Stephen Culp)

EARLIER ON LIVE MARKETS:

MEGA-CAPS RECLAIM MARKET LEADERSHIP CLICK HERE

UNTIL THE AI WAVE CRASHES CLICK HERE

STOCKS AREN'T SCARED OF THE BIG, BAD BOND MARKET CLICK HERE

EQUITIES NEARING 'BOILING POINT' CLICK HERE

STOXX HEADING FOR POSITIVE WEEK CLICK HERE

EUROPE BEFORE THE BELL: FUTURES HIGHER, OIL EBBS CLICK HERE

WHEN TREASURIES CATCH KOREA'S VOLATILITY BUG, TAKE COVER CLICK HERE