U.S. stocks fell on Friday as bond yield jumped, rekindling fears that rising rates will take the comeback momentum out of equities, especially tech names.
The Dow Jones Industrial Average kept rolling early Friday, surging 107.7 points to 32,593.29. Goldman Sachs shares jumped 2.3%, while JPMorgan climbed 1.8%.
The S&P retreated 18.11 points, from Thursday's record high, to start Friday at 3,921.23.
The NASDAQ Composite swooned 200.85 points, or 1.5%, to 13,197.83,
A quick rise in bond yields put pressure on the Nasdaq names earlier in March as investors shifted toward economically sensitive, cyclical stocks. Sharp increases in interest rates can put outsized pressure on high-growth tech stocks as they reduce the relative value of future profits.
Shares of Tesla fell more than 3%. Netflix and Facebook dropped 2%, while Apple, Amazon and Microsoft were all down at least 1%.
Before Friday's open, the NASDAQ was up 3.7% on the week and was outperforming both the S&P 500 and the Dow over the period.
U.S. stocks climbed to record highs during Thursday's regular session as a rebound in tech shares resumed and President Joe Biden's $1.9 trillion COVID-19 relief package became law. The S&P 500 jumped 1% and hit a new closing high, surpassing its previous record from Feb. 16.
Signs that the U.S. economy may be set for a healthy 2021 were plentiful on Thursday after Biden signed his much-anticipated $1.9-trillion coronavirus relief package into law. The plan will send direct payments of up to $1,400 to many Americans, and will also put nearly $20 billion into COVID-19 vaccinations and $350 billion into state, local and tribal government relief.
Biden announced Thursday evening that he would direct states to make all adults eligible for the vaccine by May 1 in his first primetime address as president.
Prices for 10-Year Treasurys dropped sharply, raising yields to 1.63% from Thursday's 1.53%. Treasury prices and yields move in opposite directions.
Oil prices waned 24 cents to $65.78 U.S. a barrel.
Gold prices sagged $20.50 to $1,702.10.