By Yasin Ebrahim

Investing.com — Friday’s Dow close was higher, but it wasn’t enough for a week-end loss. Tech lost its winning streak due to pressure from rising Treasury yields. 

It gained 0.40% or 137 point. All three of the major averages finished the week in the negative.

The three-week streak of wins in technology stocks ended, keeping the wider market in red. Investors remain cautious about growth markets in light of rising Treasury yields.

On the expectation of aggressive Federal Reserve tightening in order to curb inflation, the index soared above 2.7% for more than three consecutive years.

The Fed’s March meeting minutes, released earlier this week showed that Fed members appear “poised to hike rates 50bps in May, and initiate a sizable drawdown of the balance sheet beginning next month,” Stifel said in a note.

Alphabet (NASDAQ 🙂 and Microsoft (NASDAQ :), all major tech, fell by more than 1%. Meanwhile, the tech sector was under pressure from a continuing decline in chip stocks.  

The banking stocks were under severe pressure recently due to concerns that the potential recession would increase bank bad debt. However, investors finally saw some relief as they looked forward to next week’s quarterly results from Wall Street banks.

JPMorgan (NYSE 🙂 releases results Wednesday. Citigroup (NYSE:), Goldman Sachs (NYSE:), Wells Fargo (NYSE:) Morgan Stanley (NYSE: ) Report on Thursday

“Banks are good place to be in the upcoming economic environment not just because rates are going up, but I think the consumer still is in a position of strength,” Jimmy Lee, the founder and CEO of The Wealth Consulting Group, told Investing.com in an interview on Friday.

Although rising rates increase bank profits and lend margins, they also boost demand by driving up borrowing costs. The Fed’s hawkish plans to tighten its monetary policies will decide the rate of rising rates.

Lee said, “Most people think the Fed will be extremely hawkish and cause a depression. But I don’t believe they will.” Lee said, “If economic data begins to look bad, I believe they will cease tightening immediate.” 

Energy stocks were up more than 2%, buoyed by rising oil prices as investors weigh up the prospect of energy supply disruptions after the European Union confirmed new sanctions including a coal embargo against Russia over the latter’s invasion of Ukraine.

Oil prices fell despite Friday’s rise, as oil markets gave in to the pressure by countries agreeing to allow emergency supplies to be released to millions of barrels.

Coterra Energy (NYSE :), EOG Resources(NYSE :), and Occidental Petroleum were the top gainers, with the former up over 7%.

In earnings news, WD-40 (NASDAQ:)’s better-than-expected quarterly earnings and revenue offset softer full-year guidance, sending its share price more than 7% higher.

Boeing (NYSE: ) dropped 1.7% following the Costa Rican emergency landing that saw a Boeing 757 plane split in half. United Airlines said that some Boeing 777 grounded planes will not be returned until May 12th, as they had been delayed by United Airlines.