Tech stocks soar as investor weigh signs of wage growth easing

Technology stocks were soaring Friday amid a drop in Treasury yields after the latest employment report gave bullish investors hope that inflation is easing. Tech stocks were up 3% in late afternoon trading Friday, making information technology among the strongest performing sectors in the S&P 500, according to FactSet data, at last check. The tech-heavy Nasdaq Composite
COMP,
+2.56%
was up 2.6% late afternoon, beating sharp gains for both the S&P 500
SPX,
+2.28%
and Dow Jones Industrial Average
DJIA,
+2.13%.
Meanwhile, the yield on the 10-year Treasury note dropped 15 basis points Friday to 3.57%, according to Dow Jones Market Data. Tech and growth stocks are particularly sensitive to interest rates, and were pummeled last year as yields climbed as the Fed aggressively hiked its benchmark rate to fight high inflation. The latest employment report showed that wage growth cooled more than expected in December, even as the strong labor market added jobs.