All three major U.S. stock indexes finished Friday's session in positive territory as investors sought stability following a turbulent week driven by climbing Treasury yields. The Dow Jones Industrial Average surged 517.80 points, or 0.98%, to close at 53,277.01. The S&P 500 added 33.21 points, or 0.43%, finishing at 7,674.37, while the Nasdaq Composite rose 113.28 points, or 0.43%, to end at 26,180.45.

The so-called "Magnificent Seven" tech giants delivered mixed results on the day. Tesla jumped 5.14%, Google advanced 1.05%, Meta gained 0.75%, and Microsoft edged up 0.43%. On the downside, Amazon slipped 0.57%, Apple fell 0.63%, and Nvidia declined 0.98%.

Financials provided meaningful support to the broader market, while cryptocurrency-related stocks saw sharp gains as Bitcoin capped off a massive week, surging 22%. Robinhood shares skyrocketed nearly 14%, and Coinbase climbed 8%. The materials sector also stood out, rising 2% on the day.

The rebound came after a turbulent session on Thursday, when yields on government bonds moved higher again despite efforts by authorities to curb the selloff in the debt market. Bonds, particularly longer-dated maturities, have remained under pressure amid investor concerns that rising oil prices could reignite inflation.

Where to begin with the weekly performance? The S&P 500 dropped 1.4% for the week, while the Nasdaq fell 2%, with both benchmarks snapping a three-week winning streak. The Dow slipped 0.9% over the same period, marking its second consecutive weekly decline. The selloff extended beyond U.S. borders, as the MSCI All-Country World Index shed nearly 1% for the week.

Leo Kelly, founder and CEO of Verdence Capital Advisors, warns that if Treasury yields continue their upward trajectory and Middle East tensions persist, equities could face further downside—potentially entering correction territory by autumn. On Friday, long-dated yields extended their climb, with the 10-year Treasury note rising more than 3 basis points to 4.734%, while the 30-year bond similarly gained over 3 basis points to reach 5.273%.

"The market has grown accustomed to the 10-year yield trading between 4% and 5%," Kelly noted. "But if some event pushes it into the 6% to 7% range, that would become problematic, and the market's reaction would be quite severe."

With yields on the rise, investors are now turning their attention to next week's speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole Economic Policy Symposium, hoping for clarity on monetary policy direction and other critical areas such as central bank independence.