The Nasdaq index rallied in choppy trading on Friday as big tech names, such as Apple and Amazon, rebounded following a big sell-off in the previous session amid surging bond yields.
The S&P 500 ended little changed, while the Dow index closed lower after dropping earlier in the session to a three-week low.
The benchmark 10-year U.S. Treasury yield eased to roughly 1.4% after jumping to about 1.6% on Thursday.
Still, the sudden rise in yields has tempered investors’ appetite for technology stocks.
But Kevin Nicholson, co-chief investment officer RiverFront Investment Group say tech is still king.
"Today is a reversal for technology because it was beaten up so badly yesterday. I still believe technology is going to be one of the leaders going forward even though we are getting that cyclical rotation as you see more people focusing on industrials and materials. That's largely driven because a stimulus package that will focus on infrastructure. But I do think we're going to see equity markets be more volatile in the coming weeks just because we've gotten such a dramatic move in yields at such a rapid pace."
An early surge in the shares of GameStop fizzled and left the video game retailer's stock down 6.4% on Friday, throwing water on a renewed rally this week that has left analysts puzzled.
Meanwhile, on the economic front, the latest data showed U.S. consumer spending increased by the most in seven months in January after household incomes got a boost from the latest round of stimulus checks.