U.S. stocks closed lower Friday after a rapid surge in bond yields this week dampened investors’ optimism for equities, and especially tech stocks. The Dow Jones Industrial Average DJIA, -0.68% shed around 185 points, or 0.7%, to 26,448. The S&P 500 fell around 16 points, or 0.6%, to 2,886. The tech-heavy Nasdaq Composite COMP, -1.16% slipped around 91 points, or 1.2%, to 7,788. For the week, the S&P 500 was down 1%, the Nasdaq was down 3.2%, and the Dow was mostly flat. The Nasdaq recorded its worst week since March. Higher bond yields can hurt the performance of stocks by making U.S. government paper more attractive in comparison. They can also dent rate-sensitive sectors through higher borrowing costs.
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