The S&P 500 index was up 0.1% as of 10:45 a.m. Eastern, after being down 0.3% earlier in the day. The Dow Jones Industrial Average was up 0.4% and the technology-heavy Nasdaq Composite, which has taken a bigger blow in recent days from rise in bond yields, was down 0.6%.
The rise in bond yields has several implications for both the stock market and overall economy. Higher yields make stocks with lofty valuations less attractive. Those types of stocks tend to be technology companies, who are priced typically for growth and not for a steady return of dividends like mature companies like makers of consumer staples, utilities and real estate.
Bank stocks, which were hurt by lower interest rates last year, rose. The KBW Bank Index of 24 mid-to-large-sized banks was up 1.4%, despite the overall market being down. Banks would see higher profits if interest rates were to keep rising. Another does of stimulus would also shore up the balance sheets of many Americans.