The three major stock indexes on Friday closed at records, rebounding from the previous session's broad losses, as worries about spreading COVID-19 variants and their impact on global growth eased.
The yield on the benchmark 10-year Treasury rose Friday to 1.358%, putting an end to an eight-day bond-market rally.
The Dow Jones Industrial Average finished up 448 points, or 1.3%, to 34,870, the S&P 500 gained 1.13% and the Nasdaq rallied 0.98%.
For the week, the Dow ticked up 0.2% and the S&P 500 and the Nasdaq each added 0.4%.
Shares of Alphabet (GOOGL) - Get Free Report, Apple (AAPL) - Get Free Report and Facebook (FB) - Get Free Report ended higher Friday after President Joe Biden said he would push for changes in the technology industry. Amazon.com (AMZN) - Get Free Report slipped 0.3%.
Biden on Friday signed an executive order directing regulatory agencies to more closely investigate industry mergers and tech companies’ use of consumer data.
Stocks finished broadly lower Thursday and Treasury bond yields tumbled to below 1.3%, a five-month low, as investors feared growth would be dented by the spread of new coronavirus infections.
The reflation trade - in which assets benefiting from a strengthening economy and rising inflation outperform - has taken a beating this week amid indications that labor-market and raw-materials shortages were hampering growth in major economies around the world.
Analysts at Barclays said the "sharp reversal in reflation trades looks overdone." But they cautioned that stock markets could continue to see "erratic price action" amid “poor summer liquidity, activity data peaking, rising COVID cases, supply bottlenecks and the (Federal Reserve) closer to tapering."
TheStreet's Jim Cramer told his "Mad Money" viewers that it's easy to understand why the market sold off on Thursday: America has one of the best vaccination programs in the world and it's still getting hammered by the delta variant of COVID. Just imagine how bad the situation is in the rest of the world.
Pfizer (PFE) - Get Free Report said it would request U.S. emergency authorization from the Food and Drug Administration for a third booster dose of its COVID-19 vaccine, saying it could boost immunity and maybe protect against the delta variant of the virus. The New York health-care giant finished up 0.9%.