Dow, S&P hits record as big tech retreats and bond yields surge

10-year yield climbed 11 basis points to 1.63%

The Dow Jones Industrial Average and the S&P 500 rallied to record highs Friday as tech and other high-flying growth stocks succumbed to rising bond yields.

The Dow climbed 291 points, or 0.9%, and the S&P added 0.1%. The tech-heavy Nasdaq, meanwhile, slumped 0.59%.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 33815.9 -321.41 -0.94%
I:COMP NASDAQ COMPOSITE INDEX 13818.412584 -131.81 -0.94%
SP500 S&P 500 4134.98 -38.44 -0.92%

The mixed session came as aggressive selling of longer-dated U.S. Treasurys caused the 10-year yield to rise 11 basis points to 1.63%, making for the highest close since February 2020.

Looking at stocks, high-growth companies including mega-cap technology names like Tesla Inc., Microsoft Corp. and Facebook Inc. were all lower.

Ticker Security Last Change Change %
TSLA TESLA, INC. 719.69 -24.43 -3.28%
MSFT MICROSOFT CORP. 257.17 -3.41 -1.31%
FB FACEBOOK, INC. 296.52 -4.95 -1.64%

Financials, which benefit from a steepening of the yield curve, all gained with Bank of America Corp. and JPMorgan Chase & Co. finishing among the top performers.

Ticker Security Last Change Change %
BAC BANK OF AMERICA CORP. 38.37 -0.38 -0.98%
JPM JPMORGAN CHASE & CO. 147.44 -3.14 -2.09%

Meanwhile, Novavax Inc.’s COVID-19 vaccine was found to be 96% effective against the original version of the virus, according to a U.K. study. However, the vaccine was 86% effective against the U.K. variant and only 55% effective against the South African strand. Shares soared on the developments.

Ticker Security Last Change Change %
NVAX NOVAVAX INC. 207.30 -5.53 -2.60%

AstraZeneca plc and Oxford University’s COVID-19 vaccine was suspended in Thailand due to blood clots in some recipients. The vaccine has also been put on hold in eight European countries, including Norway and Denmark.

Ticker Security Last Change Change %
AZN ASTRAZENECA PLC 52.71 -0.40 -0.75%

In earnings, Ulta Beauty Inc. reported quarterly earnings and revenue that exceeded Wall Street estimates but issued disappointing full-year guidance amid concern masking and social-distancing orders will remain in place for much of 2021. The company also announced that CEO Mary Dillon will step down in June and be replaced by President Dave Kimbell.

Ticker Security Last Change Change %
ULTA ULTA BEAUTY, INC. 323.81 +1.18 +0.37%

In commodities, West Texas Intermediate crude oil fell 41 cents to $65.61 a barrel and gold slumped $2.80 to $1,719.50 an ounce.

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European markets ended mixed with Germany’s DAX 30 down 0.46%, France’s CAC 40 inching up 0.21% and Britain's FTSE 100 climbing by 0.36%.

In Asia, Hong Kong’s Hang Seng index lost 2.2% while China’s Shanghai Composite Index and Japan’s Nikkei 225 advanced 0.47% and 1.73%, respectively.