US stocks and bond yields rose Friday as investors analyzed new data on the economy.
The S&P 500 tipped 0.2% higher. The Nasdaq Composite added 0.5%. The Dow Jones Industrial Average added about 44 points, or 0.1%.
Equities have come under pressure in recent days as concerns about the pace of the economic recovery, high valuations of technology stocks and rising bond yields weighed on sentiment.
“Investors are taking a break,” says Arthur van Slooten, global asset allocation strategist at Société Générale. “We think there is more to do. When reflation trading is back on track and there is more confidence in it, we will see a continuation of the market performance we have had in recent weeks, he added.
In bond markets, the yield on the 10-year Treasury rose to 1.323% from 1.286% on Thursday. Yields are up this week, leaving some investors wondering if risky assets like stocks look less attractive, said Kiran Ganesh, a multi-asset strategist at UBS Global Wealth Management.