The Labor Department on Friday said that nonfarm payrolls rose by 379,000 compared to 210,000 jobs. The better-than-expected jobs report pushed stocks to rebound, as futures on the Down Jones Industrial Average surged 315 points. S&P 500 futures gained 1.1% and Nasdaq 100 futures surged 1% while Occidental Petroleum gained 3%.

Additionally, the U.S. 10-year Treasury yield blasted above 1.6% following the February jobs report. According to the Labor Department on Friday, nonfarm payrolls went above the 210,000 new jobs expectation to 379,000.

Meanwhile, the unemployment rate fell 6.2%. On the other hand, technology shares with very high valuations continued to decline. For instance, Tesla (NASDAQ: TSLA) and Peloton (NASDAQ: PTON) continued to plunge in the premarket.

On Thursday, Federal Reserve Chair Jerome Powell made remarks on rising bond yields. The Fed chair remarks resulted in a sharp sell-off in the futures.

The economic reopening could “create some upward pressure on prices,” Powell said in a Wall Street Journal webinar Thursday. Even if the economy sees “transitory increases in inflation … I expect that we will be patient,” he added.

“Equity investors, in our conversations, are really grappling with two things they may not have had to deal with for the last 10 years,” said Tom Lee, Fundstrat’s co-founder head of research. “One is the potential for inflation to actually have to be priced into equities. I think there’s a lot of confusion.”

“Then it’s a bond market that seems to be testing the Fed, which kind of scares people,” added Lee, who believes the sell-off this week is a buying opportunity.

Tech stocks plunge while energy stocks recover

Tech stocks had the biggest decline Thursday. The Nasdaq Composite plunged 2.1% Thursday while Tesla shares are down 0.3%. The S&P 500 and the Dow both plunged more than 1% Thursday, headed for a losing week. However, energy stocks outperformed with a 2.5% gain in the previous session amid oil price increase.

“Rates soared once again, which opened the door for more selling of technology stocks,” said Ryan Detrick, chief market strategist at LPL Financial. “The bright side is the economy continues to improve and leadership from financials and energy is something that suggests this isn’t a sell everything moment.”

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