US stocks rallied at the opening bell on Thursday even as the benchmark 10-year Treasury yield reached its highest level since 2002.
The Dow Jones Industrial Average rose 0.5% to 51,139.14, while the S&P 500 gained 0.3% to 7,674.66.
Technology stocks also advanced, with the Nasdaq Composite climbing 0.5% to 26,999.09.
The gains came despite continued pressure in the bond market, where the US 10-year Treasury yield has risen to its highest level in around 24 years.
Normally, sharply higher bond yields can weigh on equities by increasing corporate borrowing costs and reducing the present value investors place on future earnings, particularly among highly valued growth stocks.
However, technology shares were supported by strong results from Micron, which boosted sentiment towards semiconductor and artificial-intelligence-related companies.
For investors, the early session therefore shows an unusual divergence: bond markets continue to signal tighter financial conditions while equities, particularly technology shares, are being supported by strong corporate earnings expectations.
The key question is whether that resilience survives through the session. If Treasury yields remain elevated or move higher, the pressure from rising discount rates could eventually challenge the initial equity rally.
