Government bonds fell while stocks rose as traders predicted central banks would keep interest rates high in order to keep inflation at bay. This year, a measure of dollar strength reached a new high.

A bond selloff entered its fourth week, with the 10-year US Treasury yield rising 11 basis points above 4.54%, a level last seen in 2007.

The S&P 500 recovered from a four-day slide, rising 0.4% as traders returned to their desks following Wall Street's worst weekly selloff since March. The Nasdaq 100 finished the day up 0.5%, with Amazon up 1.7%.

Following the barrage of central bank decisions last week, traders are increasingly concerned that rising oil prices will fuel inflation, making it difficult for policymakers to cut rates anytime soon. Hedge funds increased their exposure to oil on the assumption that tightening supplies will increase demand. In the afternoon session, West Texas Intermediate oil traded below $90 per barrel.