European stocks were trying to tip higher along with USA equities (http://www.marketwatch.com/story/european-stocks-struggle-to-find-impetus-to-follow-us-lead-higher-2018-02-23), while Asian stocks rebounded (http://www.marketwatch.com/story/asian-stocks-slide-following-wall-street-selloff-2018-02-21) to mark a second-straight week of gains.
The dip in yields helped boost bond proxy sectors such as utilities .SPLRCU , up 2.66 percent, and real estate .SPLRCR , up 1.72 percent.
Gains in technology, banks and industrial companies are driving stocks higher in midday trading, making up some of the ground the market lost a day earlier.
Japan's benchmark Nikkei 225 index sank 1.2 percent to 21,713.20 and South Korea's Kospi shed 0.5 percent to 2,417.24.
Shares of Advance Auto Parts rose 11% after the auto-parts seller topped profit expectations in the most recent quarter. Extra Space Storage climbed 1.7 percent after its results also came in ahead of forecasts.
Vonn trying not to think of downhill as her last at Olympics
In what will likely be her last Olympic downhill race, USA alpine skier Lindsey Vonn won the bronze medal in her best event. She's a team player . "I was really focused". "But, I mean, honestly, this is awesome , and I'm so proud".
The UK's FTSE 100 index rose 0.5 percent, led by a 5.2 percent rally in Glencore shares. The Nasdaq composite increased 72 points, or 1 percent, to 7,307.
"Certainly bond yields pulling back today is helpful for stocks, at least for the short term, that has been the narrative that is out there - that higher bond yields are weighing on stocks and this preoccupation with three percent", said Willie Delwiche, investment strategist at Baird in Milwaukee. Early signs from the U.S. Futures Index suggest that Wall Street might open higher.
Amazon rose 1.3 percent in the first few minutes of trading, and Adobe Systems also rose 1.3 percent.
The largest per centage gainer on the TSX was Winpak Ltd (WPK.TO), which rose 8.4 per cent, while the largest decliner was Maxar Technologies Ltd (MAXR.TO), down 9.7 per cent, after it reported earnings after the bell on Thursday that missed estimates. Swiss Market Index is slipping 54.18 points or 0.60 percent. DAX of Germany is declining 6.02 points or 0.06 percent.
That in turn could invite the wrath of the bond market vigilantes, which could lead to a much more disorderly and abrupt rise in interest rates than would have occurred if the Fed, rather than the markets, took the lead in moving interest rates higher.
Boston Federal Reserve Bank President Eric Rosengren and New York Federal Reserve Bank President William Dudley will participate in a discussion on the report "A Skeptical View of the Impact of the Fed's Balance Sheet" at the 2018 U.S. Monetary Policy Forum Annual Conference held by the University of Chicago Booth School of Business, in New York at 10.15 am ET.