Pros are changing their portfolios due to the unexpected decline in rates. How they're playing it

Traders on the floor of the New York Stock Exchange.
Source: NYSE

Technology and growth stocks are back in favor with some investors, and the trend has been helped by a surprise drop in bond yields.

The 10-year Treasury yield was at 1.46% Friday, after touching 1.43% Thursday, its lowest level since March 3. Yields move opposite price, and the yield has fallen well below last week's close of 1.56%.

Strategists said that decline in yields has helped give a lift to tech and some growth names, like the ARK Innovation ETF, up 1.9% Thursday and more on Friday. The S&P information technology sector was up half a percent Friday, and was up 1.2% for the week. The cyclical sectors that had been rising, like materials and financials, were lower this week through Friday morning, shedding 2.7% and 2% respectively.

"With lower interest rates, some investors that had been on the fence now have reason to be more optimistic about technology shares," said Sam Stovall, chief investment strategist at CFRA. "I think in the short term, you have better potential with growth than value, which would enhance the potential for value down the road."