US stocks opened nearly flat as political turmoil in Europe and concerns over public finances dampened risk appetite.

Investors are grappling with rising risks in the bond market and politics on one hand, and resilient corporate earnings expectations on the other.

At 9:30 New York time, the S&P 500 and Nasdaq 100 were little changed, while the Dow slipped 0.1%.

Market breadth remains one of investors' biggest concerns. The share of stocks trading above their 10-day, 50-day and 200-day moving averages has fallen to its lowest level since March.

Of the 416 industry groups tracked by Piper Sandler analysts, only 9 hit 26-week highs last week, the fewest since March, while 72 groups hit new lows.

"We need to see rates and oil prices come down, and that is not happening, and the market's internal structure is deteriorating," said Craig Johnson, Piper Sandler's chief market technician. "That is going to be a challenge for the market." He added that with market participation declining, investors are turning to large, highly liquid stocks for safety.

Strategists at Citigroup and JPMorgan expect strong corporate earnings to continue supporting stocks despite heightened bond market volatility.

JPMorgan's Mislav Matejka sees important differences between the current environment and the period of surging inflation in 2022, including a stronger outlook for the technology sector and a more favorable wage and labor market backdrop.

Citigroup strategists expect stocks to weaken and US Treasury yields and the dollar to rise as the US midterm elections approach, with those moves likely reversing after the vote.

"Midterm elections tend to produce 'gridlock,' because a divided government usually means the congressional majority is too slim to override a presidential veto," Citigroup strategists including Daniel Tobon and Scott Chronert wrote in a report.

The strategists expect global stocks to rise about 6% more by year-end, supported by earnings growth.