* Indexes: Dow up 0.3%, S&P 500 up 0.04%, Nasdaq off 0.1%

* Dominion Energy ( D ) rises on NextEra deal

* Regeneron slides after skin cancer drug combo misses

trial goal

(Updates after markets open)

By Ragini Mathur and Utkarsh Hathi

May 18 (Reuters) - U.S. stock indexes were mixed in

choppy trading on Monday even though the bond-market selloff

that had pressured equities last week showed signs of cooling

and oil prices pulled back.

The 10-year Treasury yield, the benchmark for

global borrowing costs, fell to 4.573%, having climbed as much

as 4.631% to its highest level since February 2025 earlier in

the session.

Oil prices also moved lower, with Brent crude

down nearly 2%, after reports said the U.S. had proposed a

temporary waiver on Iranian oil sanctions, easing some concerns

about supply disruptions. Iranian officials did not immediately

comment.

"Yields are key to all of this because growth stocks,

especially AI-related companies, are priced on forward-looking

earnings. When yields move higher, their current valuations come

down. That's really the key issue for the market," said Robert

Pavlik, senior portfolio manager at Dakota Wealth.

The recentbond-market selloff was fueled by a surge in oil

prices, which has stoked concerns of inflation potentially

keeping borrowing costs elevated as efforts to end the Iran war

appeared to stall.

At 10:02 a.m. ET, the Dow Jones Industrial Average

rose 139.25 points, or 0.28%, to 49,665.42, the S&P 500

gained 3.27 points, or 0.04%, to 7,411.61 and the Nasdaq

Composite lost 35.93 points, or 0.14%, to 26,189.22.

Consumer services and the financial sector

led gains on the S&P 500, while information technology

and energy were among the weakest performers.

Wall Street had rallied sharply in recent weeks, with the

benchmark S&P 500 and the tech-heavy Nasdaq

reaching record highs as enthusiasm around artificial

intelligence helped investors look past the inflationary threat

from soaring oil prices.

Traders are now pricing in a more than 38.8% chance the U.S.

Federal Reserve will raise interest rates in January, according

to CME's FedWatch tool, after last week's hotter-than-expected

inflation readings.

The world's most valuable company, Nvidia ( NVDA ), is

scheduled to report results on Wednesday.

Expectations are high for the company, whose shares have

risen 36% from a March low, while the Philadelphia SE

Semiconductor Index has surged more than 60% this year on

strong demand for AI-related chips.

Walmart ( WMT ), the largest retailer in the world, is also

expected to report earnings this week, which could offer a

clearer picture of how U.S. consumers are coping with higher

energy prices and broader inflation pressures.

In other movers on the day, Dominion Energy ( D ) jumped

10.5% after power firm NextEra Energy ( NEE ) said it would buy

the smaller utility in an all-stock deal valued at about $66.8

billion. NextEra shares fell 4.2%.

Shares of Regeneron fell 11.5% after the

drugmaker's experimental treatment missed the main goal in a

late-stage trial in patients with advanced melanoma, a type of

skin cancer.

Advancing issues outnumbered decliners by a 2.12-to-1 ratio

on the NYSE, and by a 1.26-to-1 ratio on the Nasdaq.

The S&P 500 posted 13 new 52-week highs and 11 new lows,

while the Nasdaq Composite recorded 42 new highs and 95 new

lows.