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The Nasdaq and the S&P 500 fell on Friday, dragged down by growth and technology stocks as U.S. Treasury yields surged at the end of a volatile week marked by concerns around aggressive moves by the Federal Reserve to tame inflation.

Technology stocks led losses among the 11 major S&P 500 sectors, falling 1.2%, to extend this week’s decline due to a surge in yields as investors focused on the pace and scope of the Fed’s plans to reduce its balance sheet.

Shares in Tesla Inc, Nvidia Corp and Microsoft Corp fell between 1.1% and 3.9% as the benchmark 10-year Treasury yield hit a fresh three-year high of 2.73% earlier in the day.

“As Fed policy turns hawkish and rates move higher, not only do equity valuations typically get reset lower, but the groups that tend to suffer the most are the high multiple growth stocks,” said Sean Bandazian, senior investment analyst for Cornerstone Wealth.

The three main indexes looked set to end the week lower, with the tech-heavy Nasdaq the worst hit after comments from Fed officials raised concerns about rapid interest rate hikes causing an economic slowdown.

The NYSE FANG+TM index, which includes Amazon.com Inc and Apple Inc, and semiconductor stocks have shed more than 4% each so far this week.

Reflecting the defensive mood in the markets, utilities briefly touched a new all-time high, while healthcare hovered near its peak.

Bank of America strategists warned in a weekly research note the macro-economic picture was deteriorating fast and could push the U.S. economy into recession.

While markets have rebounded significantly since the February lows hit in the wake of the Ukraine war, volatility gauges picked up this week as fresh sanctions against Russia also kept investors on edge.

The European Union formally adopted its fifth package of sanctions against Russia since its invasion of Ukraine, including bans on the import of coal, wood, chemicals and other products.

However, rate-sensitive lenders JPMorgan Chase & Co, Bank of America Corp, Citigroup Inc and Goldman Sachs Group Inc gained between 0.7% and 1.0%.

Big U.S. banks, which kick off the first-quarter results season next week, are expected to show a sharp decline in earnings from a year earlier, when they benefited from exceptionally strong dealmaking and trading, and funds set aside for loan losses being released.

At 10:23 a.m. ET, the Dow Jones Industrial Average was up 11.89 points, or 0.03%, at 34,595.46, the S&P 500 was down 17.23 points, or 0.38%, at 4,482.98, and the Nasdaq Composite was down 147.78 points, or 1.06%, at 13,749.52.

Robinhood Markets Inc fell 5.5% after a report said Goldman Sachs downgraded the online brokerage, while Kroger Co jumped 3.1% on a ratings upgrade by BofA Global Research.

Declining issues outnumbered advancers for a 1.59-to-1 ratio on the NYSE and a 2.16-to-1 ratio on the Nasdaq.

The S&P index recorded 43 new 52-week highs and two new lows, while the Nasdaq recorded 33 new highs and 123 new lows.

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