What a Week: Bond-Bound

As the markets soared to new heights in April and May, the mantra among many market participants was, "I'm looking to buy a 3% to 5% dip."

That dip came fast and furious this week, amid rising Treasury yields and "sudden" concerns about inflation and the potential for Federal Reserve rate hikes. In response, major averages suffered a three-day swoon that chopped about 400 points, or 2.9%, off the Dow Jones Industrial Average, 49 points, or 3.2%, off the S&P 500, and about 77 points, or 2.9%, from the Nasdaq Composite.

The selling culminated with Thursday's near 200-point Dow drop and, true to their word, many managers did step into the resulting breach on Friday. The Dow jumped 157.66 points, or 1.2%, to 13,424, the S&P added 1.1% to 1508 and the Nasdaq jumped 1.3% to 2574. ...