(Bloomberg) — The Nasdaq 100 Index was on track to cap its worst week in almost one year as a spike in U.S. Treasury yields triggered a sharp unwinding of bets in big technology stocks that have skyrocketed during the pandemic.The selling was stabilizing on Friday morning in New York, with contracts on the benchmark little changed at 10:30 a.m. The tech-heavy index has dropped more than 5% this week, led by a selloff in companies with high valuations, such as Facebook Inc., Apple Inc. and DocuSign, Inc.The so-called megacaps and other tech stocks bounced early on Friday, with analysts and investors saying the longer-term outlook for stocks remained largely intact after the bruising selloff.“On balance, the investment case for equities is still OK, but not spectacular,” said Joseph Little, global chief strategist at HSBC Asset Management.Investors grappled with implications of higher borrowing costs and inflation expectations. The speed of the jump in Treasury yields has caught investors by surprise, with many drawing comparisons to the 2013 taper tantrum — a market rout fueled by concern the Federal Reserve would curtail stimulus.Still, there was no shortage of investment strategists reminding clients that faster economic growth is a bullish driver for stocks while bond yields levels remain low compared with historical standards.The S&P 500 has slipped 2.4% so far this week, poised for the first back-to-back loss since October. One indication that the mood is still jittery: the Chicago Board Options Exchange Volatility Index hovered near 29, a relatively high level.“It’s not the absolute level, but the rapid pace of increase that worries risk investors,” said Ipek Ozkardeskaya, a senior analyst at Swissquote. “We know that soaring yields are no good for the economy.”Benchmark 10-year Treasury yields were around 1.5% on Friday, stabilizing after Thursday’s jump. Outside of the U.S., markets were firmly risk-off. Equity benchmarks in Asia lost more than 3%, while investors sought a haven in the dollar.“We do not expect the rise in yields to derail the equity rally,” Mark Haefele, chief investment officer of UBS Global Wealth Management, said in a note.(Updates share moves throughout, and chart.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.