The Nasdaq recovered as the bond rout retreated on Friday, but most other equity markets swooned around the world as data showing a strong rebound in U.S. consumer spending kept fears of rising inflation alive. Shares of Amazon.com Inc, Microsoft Corp and Alphabet Inc edged up after bearing the brunt of this week's downdraft to help the Nasdaq shake off its worst day in almost four months on Thursday. The Nasdaq Composite advanced 0.56% while the S&P 500 slipped 0.48% after a late-session surge failed to hold.
The tech-heavy Nasdaq index rallied in choppy trading on Friday, even as sentiment remained fragile after the index's worst performance in four months the day before as fears of rising inflation kept U.S. bond yields near a one-year high. The S&P 500 ended little changed, while the Dow index closed lower after earlier dropping to a three-week low. The Dow still posted gains of nearly 4% for the month, as investors bought into cyclical companies set to benefit from an economic reopening.
Fears of rising interest rates have caused investors to take fright.