Stocks rallied Friday, recovering the ground lost in the previous session, as Treasury yields stabilized.
The Dow Jones Industrial Average advanced 391.16 points, or 1.15% to close at 34,283.10. The S&P 500 climbed 1.56% to finish the session at 4,415.24. The Nasdaq Composite added 2.05% to 13,798.11, notching its best day since May.
All 11 sectors of the S&P 500 were positive Friday, but tech outperformed, rising 2.6%. Microsoft leapt to all-time highs during the session and ended the day higher by 2.5%. Apple, Meta, Tesla and Netflix jumped more than 2% each, while Alphabet gained 1.8%.
Friday's surge was also enough to lift the three major averages for a second consecutive week of gains. The S&P 500 advanced 1.3%, while the Dow added about 0.7%. The Nasdaq was the outperformer, rising roughly 2.4% on the week.
Stocks staged a rebound as the benchmark 10-year Treasury yield hovered around the flatline.
It was a marked reversal from Thursday's action in which the rate on the 10-year jumped more than 10 basis points. The spike in yields followed a dismal Treasury Department bond auction and comments from Federal Reserve Chair Jerome Powell that suggested more intervention may be needed to quell inflation.
Thursday's ensuing sell-off also snapped the longest winning streaks for the S&P 500 and the Nasdaq Composite in two years.
Recent volatility notwithstanding, a resilient economy has helped equities even as investors remain uncertain about the Fed's timeline around rate policy, according to UBS.
"A continued high level of unfilled job openings and solid private sector balance sheets support our view for a 'softish' economic landing," UBS' David Lefkowitz wrote in in a Friday note. "Still, economic growth will likely slow in the months ahead and further improvements in inflation will probably be more incremental."
Correction: An earlier version of this story misstated the Federal Reserve's stance on monetary policy.