Bond yields rebounded solidly and stock indexes notched new highs Friday as Wall Street closed out a choppy, holiday-shortened week of trading with the market’s third straight weekly gain.
The S&P 500 index rose 1.1% to an all-time high for the second time this week. The benchmark index more than made up for its losses a day earlier, giving it a 0.4% gain for the week. The gains were broad with about 90% of the stocks in the S&P 500 closing higher. Banks, technology companies and industrial stocks powered much of the rally.
The gains followed bursts of selling this week as bond yields fell sharply, a sign that investors might be turning cautious after a recent run of record highs for stocks. Bond yields also reversed course Friday. The yield on the 10-year Treasury note jumped to 1.36% from 1.28% a day earlier.
“Today was ‘just let’s take a breath on all of this position-changing,” said Tom Martin, senior portfolio manager with Globalt Investments.
The S&P 500 index rose 48.73 points to 4,369.55. The Dow Jones Industrial Average gained 448.23 points, or 1.3%, to 34,870.16, also a record high. The Nasdaq composite added 142.13 points, or 1%, to 14,701.92, the tech-heavy index’s third all-time high this week.
Small-company stocks did much better than the rest of the market. The Russell 2000 index rose 48.33 points, or 2.2%, to 2,280.