U.S. stocks eked out a record, though rising Treasury yields continued to weigh on technology stocks. The dollar jumped.

The S&P 500 closed higher amid rallies in financial and industrial shares as the rotation into value shares resumed. The Nasdaq 100 Index gauge slumped after accelerating vaccinations in the U.S. and the passage of the US$1.9 trillion pandemic-relief bill sent Treasury yields past 1.64 per cent. The Dow Jones Industrial Average added to its all-time high.

“There’s been a little more volatility than usual, particularly because there’s a number of crosscurrents both tailwinds and headwinds,” said Michael Reynolds, chief investment officer at Glenmede Trust Co.

European shares ended lower, with tech the biggest decliner following the Tencent news. A resurgence of the virus in Italy coupled with division over AstraZeneca Plc’s COVID-19 vaccine also hit sentiment. Burberry Group Plc rose following an announcement that the rebound in its fourth quarter has been stronger than analysts expected.

Markets were jolted on Friday by the surge in yields, after relatively smooth bond sales this week had eased concerns on the fixed-income outlook. The wave of stimulus and vaccine rollout in the U.S. is once more forcing investors to confront the prospect of excessive inflation. The focus now turns to the Federal Reserve decision next week.

“We think the U.S. 10-year yield has further room to go and could reach 1.80 per cent,” said Sebastien Galy, a senior macro strategist at Nordea Investment Funds. “Growth stocks maintain a high sensitivity to rates, which continues to suggest that they are quite overvalued.”

Elsewhere, European debt dropped after authorities were said to have no intention of expanding stimulus despite their pledge to keep yields in check. Oil fell below US$66 a barrel.

These are the main moves in markets:

Stocks

The S&P 500 Index rose 0.1 per cent as of 4 p.m. New York time.

The Dow Jones Industrial Average climbed 0.9 per cent in a sixth straight advance.

The Nasdaq 100 Index fell 0.9 per cent.

The Stoxx Europe 600 Index declined 0.3 per cent to 423, the first retreat in a week.

Currencies

The Bloomberg Dollar Spot Index rose 0.3 per cent.

The euro declined 0.2 per cent to US$1.1959.

The British pound declined 0.5 per cent to US$1.3928, the largest decrease in more than two weeks.

The Japanese yen depreciated 0.5 per cent to 109.02 per dollar, the weakest in about nine months.

Bonds

The yield on two-year Treasuries gained one basis point to 0.15 per cent.

The yield on 10-year Treasuries increased nine basis points to 1.63 per cent, the highest in 13 months on the biggest climb in more than two weeks.

The yield on 30-year Treasuries jumped nine basis points to 2.39 per cent, the highest in more than 14 months on the largest surge in more than two months.

Germany’s 10-year yield rose three basis points to -0.31 per cent, the biggest rise in more than a week.

Commodities

West Texas Intermediate crude fell 0.6 per cent a barrel to US$65.62.

Gold futures were flat at US$1,722.60 an ounce.

Copper fell 0.6 per cent to US$4.11 a pound.

--With assistance from Anchalee Worrachate.