The S&P 500, Dow Jones, and Nasdaq indexes closed with mixed results on Friday. Chipmakers and AI-infrastructure stocks boosted the S&P 500 and Dow, while megacap tech stocks dragged down the Nasdaq 100. Higher bond yields affected stocks, with the 10-year T-note yield reaching a 1.5-week high of 4.19%. European stocks hit record highs.

Cryptocurrency-exposed stocks surged as Bitcoin rose over 1%. Chip makers like Sandisk and Micron Technology led gains in the S&P 500 and Nasdaq 100, while cybersecurity stocks like Atlassian and CrowdStrike Holdings fell. Insurance companies like Progressive and Allstate were under pressure. Sable Offshore rose over 30% after a court ruling. RH and Wayfair gained.

Interest rates saw the 10-year T-note yield rise to 4.187% on Friday, reaching a 1.5-week high. European government bond yields also climbed. The Eurozone Dec S&P manufacturing PMI was revised down to 48.4, while the UK Dec S&P manufacturing PMI was revised to 50.6. Swaps indicate a 1% chance of a rate hike by the ECB.

Read more at Nasdaq: Stocks Settle Mixed on Strength in Chip Makers and Weakness in Megacap Tech