Tech stocks rebound as bond-market turmoil and reflation trades fade

Tech stocks rebound as bond-market turmoil and reflation trades fade

US stocks wavered on Friday as bonds pared some losses and investors moved back into defensive plays.

The somewhat tepid session reverses several days of heavy selling in Treasurys that roiled the stock market. Yields soared to one-year highs as traders bet on new stimulus to lift inflation more than previously expected. The moves cut into growth stocks' appeal and fueled a sharp rotation to cyclical assets.

The trend reversed slightly on Friday. Treasury yields dipped, offering a reprieve for equities investors overwhelmed by the week's sudden selling. Tech stocks gained, though the Nasdaq and S&P 500 still closed out the week with a net loss.

Here's where US indexes stood after the 4:00 p.m. ET close on Thursday:

Energy and financial stocks fell the most, leading the 30-stock Dow to underperform.

Federal Reserve Chair Jerome Powell indicated Tuesday the rise in bond yields signaled investors are pricing in a "robust and ultimately complete recovery," seemingly unperturbed by the rate of the Treasury sell-off. The chair reiterated that inflation remains far from the levels needed to justify tightening the Fed's ultra-loose policy stance.

Others agreed, noting the economy still has plenty of ground to make up before the Fed deems it strong enough to warrant a