"I think the next story is going to be commodities. How far do these go down? Is it fundamental or is it some financial investors getting out of commodities because they don't look so good with the rise in short-term rates in the U.S.?" said Sinche.
The U.S. Treasury yield curve did flatten in the past week, with short-term rates moving closer to longer-duration yields on expectations of a Fed rate hike. The central bank's chair, Janet Yellen, testified for two days before Congress this past week, and emphasized that the Fed could raise rates this year, depending on the economic data.
While most economists expect a September rate hike, the market has stubbornly priced in a later rise and some bond market participants don't see a rate increase until next year.
Nuveen Asset Management's Robert Doll said the stock market should not fear a small rate hike from the current zero level. "I think they're (the Fed) dying to get started and they should, and my guess is, absent something cataclysmic, they probably go in September," he said.
Stocks closed out the week with gains after Greece accepted austerity measures required for its bailout. There was also a pickup in Chinese data and Shanghai shares ended the week higher. The S&P 500 was up 2.4 percent for the week at 2,126.64, within 5 points of its record close. The Nasdaq composite ended the week up 4.2 percent at a new closing high.