This week, tech stocks fell and bond yields rose as concerns about the banking sector subsided and traders increased their bets that the Federal Reserve will raise interest rates at least once more this year.

The Nasdaq 100 fell 0.3% on Friday as swaps traders increased bets on a June rate hike; trading suggests a quarter-point increase has better than three-in-four odds for May. The tech-heavy index is on track for its second weekly loss in a row, the benchmark's longest such losing streak this year. The S&P 500 fell 0.3%, erasing its weekly gain, as policy-sensitive technology names weighed on the index.

Markets were jolted after Fed Governor Christopher Waller stated his preference for more policy tightening in the central bank's fight against inflation. His remarks fueled hawkish bets further after a Reuters report said Atlanta Fed President Raphael Bostic was calling for a quarter-point increase in May, followed by a pause.

Treasury yields rose, with the rate-sensitive two-year bond rising 13 basis points to around 4.1%, a weekly high, after a measure of March retail sales showed core readings fell less than expected and Fed officials suggested more tightening ahead. A dollar index rose, while gold futures fell.

Equities have been trapped in a narrow trading range this week, and options data indicate that they may remain so as the relative price to hedge remains high. Chartists see 4,200 as the key level the S&P 500 needs to break through in order to regain some momentum.