US stocks open modestly higher as traders look beyond Fed worries

US stocks rose as bond yields pared their recent surge and investors looked beyond prospects for aggressive Federal Reserve rate hikes. The dollar fell.

The Dow Jones Industrial Average gained 215 points or 0.7%. The S&P 500 and Nasdaq Composite advanced 0.6% and 0.7%, respectively. The gains came despite Nvidia announcing weak revenue for the second quarter, putting pressure on semiconductor stocks.

Tesla Inc. joined a rally in electric-vehicle firms after the US Senate passed a key tax, climate and health-care bill. Bed Bath & Beyond Inc. led shares of meme shares and others favored by individual investors higher as the home-goods retailer gained for a ninth straight session.

Friday’s strong job data added to the case for more Fed monetary tightening, and traders are looking to inflation numbers due this week for clues on the policy path.

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