Stocks Face Key Test as Yields Rise; Tech Struggles but Megacaps Provide Ballast

For the S&P 500 to hold 2023 gains, 10-year and 30-year Treasury yields need to stay below 5%, according to BofA's Michael Hartnett.

Investors still have substantial cash holdings that could cushion stocks if yields rise further.

The "Magnificent Seven" megacaps now make up almost 30% of the S&P 500's market cap, a record weight.

Tech stocks fell Friday, leaving the Nasdaq on track for a weekly loss, but they outperformed earlier in the week.

The S&P 500 and Dow were down Friday but remain on track for weekly gains.