Dow collects 570 factors within the large turnaround, Nasdaq ends the wild day 1.6% larger

US stocks rebounded from a sharp sell-off on Friday as the bond yield rally subsided, while a stronger-than-expected employment report added optimism for a faster economic recovery.

The Dow Jones Industrial Average rose 572.16 points, or 1.9%, to 31,496.30 after losing 150 points. The S&P 500 ended the wild session 2% higher at 3,841.94 after losing 1% earlier. The Nasdaq Composite gained 1.6% to 12,920.15 while Apple gained 1% and Microsoft 2%. At its lowest point, the tech-heavy benchmark fell 2.6%.

The major averages rebounded from their lows as bond yields fell from their session highs. The 10-year government bond yield fell to 1.55% after falling over 1.6% to hit a 2021 high after data showed a surge in employment growth.

“Returns have declined from the previous move, and this has helped underpin the rise in the market,” said Quincy Krosby, chief market strategist, Prudential Financial. “As tech names moved into correction territory, the tech sell-off had reached oversold levels on most measures and had to be bought by investors and traders.”

The Labor Department reported Friday that the number of non-farm workers rose by 379,000 for the month and the unemployment rate fell to 6.2%. This compares with the expectations of 210,000 new jobs and the unemployment rate, which according to the Dow Jones should remain stable at 6.3% in January.

Stocks that would benefit from a quick economic comeback rose on the employment report. The S&P 500 energy sector was up 3.9% and had its best day since November. Occidental Petroleum was up 4.5% while Devon Energy was up 8.4%. Finances and materials each increased more than 2%.

“Today’s employment report confirmed an economy poised to reopen more broadly,” said Gregory Faranello, director of US interest rate trading at AmeriVet Securities. “The quick sell-off in US 10-year rates following today’s employment report was achieved with good buying around the 1.60% level, supporting the equity and credit markets throughout the day.”

However, the rise in interest rates fueled fears that growth-oriented technology companies that led the market rally last year could struggle to meet expectations if the cost of borrowing rises. Tesla fell more than 3%, bringing its weekly losses to 11%. Though the stock closed well from its Friday lows.

Pandemic winners Peloton and Zoom Video were down 12% and 9% respectively this week. Red-hot investor Cathie Wood, who focuses on innovative companies, saw her flagship fund drop double-digit numbers this week, wiping out its 2021 profits.

Despite the rebound on Friday, the Nasdaq fell more than 2% this week and the tech-heavy benchmark turned negative for a short period of time during the year. The S&P 500 gained 0.8% this week and fell for two weeks. The blue chip Dow outperformed with a weekly gain of 1.8% as investors looked to the rebound.

Friday’s moves followed a strong sell-off on Thursday triggered by comments from Fed Chairman Jerome Powell on rising bond yields. The Fed chairman said the recent attempt caught his attention, but it gave no indication of how the central bank would rein it. Some investors had expected Powell to signal his willingness to adjust the Fed’s purchase program.

The economic reopening could “put some upward pressure on prices,” Powell said in a Wall Street Journal webinar Thursday. Even if the economy “sees a temporary spike in inflation … I assume we’ll be patient,” he added.

– CNBC’s Maggie Fitzgerald contributed to the coverage