US stocks waver as chaotic bond rout cools and investors find new footing

US stocks waver as chaotic bond rout cools and investors find new footing

US stocks fluctuated on Friday as the week's sell-off in bonds eased and investors looked to recoup heavy losses.

Major indexes are on track for one of their worst weeks since the pandemic first slammed markets in March 2020. Investors dumped Treasurys throughout the week amid hopes that Democrat-backed stimulus would fuel stronger-than-expected inflation. The surge in bond yields jolted the stock market, with high-flying tech names tumbling the most. 

The week's trend reversed slightly on Friday. Treasury yields dipped from one-year highs, offering a reprieve for equities investors overwhelmed by recent sessions' selling. Tech stocks retraced some losses, though indexes still sit well below levels seen at the start of the week.

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

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 ultra-loose policy that helped drive stocks higher last year.

"Policymakers may be perfectly comfortable with what's happening," Craig Erlam, senior market analyst at Oanda Europe, said. "Investors should not need the central bank