Nasdaq tumbles sharply as stimulus and vaccine progress send bond yields spiking

• Tech stocks tumbled on Friday after the 10-year US Treasury yield spiked back to its recent high of 1.60%.
• The yield surge came as continued COVID-19 vaccine progress and the passage of a $1.9 trillion stimulus package spurred inflation concerns.
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US tech stocks fell on Friday, giving up most of their Thursday gains as a spike in bond yields led to risk-off sentiment for the sector.

The yield on the 10-year US Treasury note spiked to 1.60% on Friday, just below its recent cycle high of 1.61%.

The spike in yields came after President Joe Biden signed his $1.9 trillion stimulus package into law, spurring inflationary concerns. Continued progress on the COVID-19 vaccine front also helped support higher bond yields as investors prepare for a strong economic reopening in the coming months.

Here's where US indexes stood at 9:40 a.m. ET on Friday:

• S&P 500: 3,924.13, down 0.4%
• Dow Jones industrial average: 32,611.01, up 0.4% (125 points)
• Nasdaq composite: 13,191.95, down 1.5%

Novavax soared 20% in Friday trades after its COVID-19 vaccine was found to be 96% effective in preventing contraction of the original virus strain.

Shares of Ulta Beauty dropped 10% after its fourth quarter earnings report missed analyst estimates. The firm also gave guidance that didn't meet analyst estimates, and announced that its CEO Mary Dillon would step down.

Oil prices were lower. West Texas Intermediate crude fell as much as 0.9%, to $65.41 per barrel. Brent crude, oil's international benchmark, dropped by 0.9%, to $69.03 per barrel, at intraday lows.

Gold fell as much as 1.4%, to $1,699.26 per ounce.