The benchmark US 10-year Treasury yield surged to 4.747%, its highest level since January 2025, as investors weighed strong corporate earnings against persistent inflation concerns.
The yield climbed 4.51 basis points to close at 4.708% before peaking, signaling renewed pressure on the fixed-income market despite a positive backdrop for equities.
US stock markets closed higher on Friday, driven by robust quarterly results from technology giants Amazon and Microsoft.
The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all posted gains, reflecting investor confidence in the sector's earnings momentum.
However, the rally was tempered by the sharp rise in bond yields, which typically weigh on growth stocks by increasing borrowing costs and discount rates.
The divergence between equity strength and bond market stress underscores the complex environment facing traders.