the dow jones industrial average jumped to another record high on friday as rising reopening optimism continued to encourage the rotation into cyclical stocks meanwhile surging bond yields rekindled valuation fears and took the comeback momentum out of tech names the 30stock benchmark climbed 29305 points or 09 to close at a record at 3277864 bank stocks gained amid rising rates while industrials continued their strength on the back of new stimulus goldman sachs shares jumped 2 and jpmorgan climbed 12 boeing and caterpillar popped 68 and 42 respectively the sp 500 erased earlier losses and inched up 01 eking out a record close of 394334 tech and communication services were the only two sectors registering losses the nasdaq composite shed 06 as rates surged alphabet and facebook dropped 2 each while apple amazon and microsoft all closed in the red the 10year treasury yield jumped 10 basis points to 164 at its session high friday hitting its highest level since february 2020 the benchmark rate started 2021 at around 092 the rapid rise in bond yields prompted investors to dump the nasdaq names again after a brief rebound earlier this week sharp increases in interest rates can put outsized pressure on highgrowth tech stocks as they reduce the relative value of future profits higher rates less dovish central banks are now considered to be the single biggest threat for risk assets ralf preusser bank of americas rates strategist said in a note with the passage of the us fiscal stimulus package and the blistering progress in vaccinations in the us a number of other key risks are falling by the wayside ned davis research estimated that the nasdaq 100 the tech heavy index which tracks the 100 largest nonfinancial companies in the nasdaq composite would drop another 20 if the 10year yield hits 2 fridays selloff pared the nasdaqs weekly gain to 3 the sp 500 rose 26 this week while the bluechip dow outperformed with a 4 rally the russell 2000 advanced 06 to a record friday bringing its gains this week to more than 7 i think the story is becoming very very clear in the tech sector we have incredibly high valuations and yields that have tripled from the low last year said robert conzo ceo of the wealth alliance you are going to see a lot of volatility in the tech sector theres a better trade out there in the cyclicals investors piled into names tied to an economic recovery after president joe bidens 19 trillion covid19 relief package became law bidens muchanticipated relief bill will send direct payments of up to 1400 to many americans as soon as this weekend and will also put nearly 20 billion into covid19 vaccinations and 350 billion into state local and tribal government relief biden announced thursday evening that he would direct states to make all adults eligible for the vaccine by may 1 in his first primetime address as president biden also set a goal for americans to be able to gather in person with their friends and loved ones in small groups to celebrate the fourth of july