The Dow Jones Industrial Average hit another record high on Friday as mounting optimism on the reopening continued to fuel rotation into cyclical stocks. Meanwhile, rising bond yields sparked valuation fears and took the tech name off the ground.

The 30-stock benchmark climbed 293.05 points, or 0.9%, to close at a record high of 32,778.64. Bank stocks rose amid rising interest rates, while industrials continued their strength on fresh impetus. Goldman Sachs stocks rose 2% and JPMorgan rose 1.2%. Boeing and Caterpillar gained 6.8% and 4.2% respectively.

The S&P 500 made up earlier losses, rising 0.1%, a record close of 3,943.34. Tech and communications services were the only losing sectors. The Nasdaq Composite lost 0.6% as rates rose. Alphabet and Facebook each fell 2%, while Apple, Amazon and Microsoft were all in the red.

The yield on 10-year government bonds rose from their session high on Friday by 10 basis points to 1.64% and thus reached the highest level since February 2020. The key interest rate started at around 0.92% in 2021.

The rapid surge in bond yields prompted investors to drop the Nasdaq names again after a brief rebound earlier this week. Large rate hikes can put undue pressure on high-growth technology stocks as they reduce the relative value of future earnings.

“Higher interest rates and less reluctant central banks are seen as the greatest threat to risk-weighted assets today,” said Ralf Preusser, interest rate strategist at Bank of America, in a note. “With the passage of the US stimulus package and rapid advances in vaccinations in the US, a number of other major risks are falling by the wayside.”

Ned Davis Research estimated that the Nasdaq 100, the tech-heavy index that tracks the 100 largest non-financial companies on the Nasdaq Composite, would fall another 20% if the 10-year return hits 2%.

The sale on Friday brought the weekly profit of the Nasdaq down to 3%. The S&P 500 rose 2.6% this week while the blue chip Dow outperformed a 4% rally. The Russell 2000 rose 0.6% to a record high on Friday, bringing its gains to over 7% that week.

“I think the story is getting very, very clear in the tech space. We have incredibly high valuations and returns that have tripled from last year’s lows,” said Robert Conzo, CEO of The Wealth Alliance. “You’re going to see a lot of volatility in the tech sector. There’s better trading with the cyclicals.”

Investors piled names tied to an economic recovery after President Joe Biden’s $ 1.9 trillion aid package to Covid-19 became law.

Biden’s much-anticipated relief bill will send direct payments of up to $ 1,400 to many Americans as early as this weekend, as well as nearly $ 20 billion for Covid-19 vaccinations and $ 350 billion for state, local, and tribal government efforts provide.

Biden announced Thursday evening that he would instruct states to qualify all adults as president for the vaccine by May 1 in his first prime-time address. Biden also aims to allow Americans to meet in small groups in person with their friends and loved ones to celebrate the Fourth of July.