Declines in financial stocks pulled the Dow Jones Industrial Average lower Friday, and all three major stock indexes ended the week in the red. The blue-chip index dropped 234.33 points, or 0.7%, to 32627.97, while the S&P 500 edged down 2.36 points, or 0.1%, to 3913.10. The technology-heavy Nasdaq Composite climbed 99.07 points, or 0.8%, to 13215.24. All the indexes posted weekly losses of less than 1%. Markets have been choppy this week, with investors weighing brightening economic prospects on one hand and worries that interest rates will climb sooner than anticipated on the other. Some investors are betting that inflation will rise as growth picks up and that it will remain elevated long enough to force the Federal Reserve to tighten monetary policy. Those concerns have led to a sharp selloff in the government bond market and spurred investors to exit tech and other high-growth stocks. That trade stalled Friday as tech stocks outperformed the broader market and yields inched slightly lower. The yield on the benchmark 10-year Treasury note edged down to 1.729% after ending Thursday at 1.730%, its highest since January 2020. “After a bit of significant selling, investors tend to lick their wounds and wake up and say: Is this a real selloff or a temporary blip in the road?” said Gregory Perdon, co-chief investment officer at private bank Arbuthnot Latham. Friday’s relatively muted moves are “indicative that investors think it is just a bump in the road.” The Fed said Friday that it would allow a yearlong reprieve for the way big banks account for ultrasafe assets such as Treasurys to expire at the end of the month, pressuring bank stocks. JPMorgan Chase dropped $2.51, or 1.6%, to $155.14. Bank of America fell 41 cents, or 1.1%, to $38.53, and Citigroup fell 83 cents, or 1.1%, to $73.01. “To us that’s a pretty clear reaction to the Fed comments,” said Greg Bassuk, chairman and chief executive officer of AXS Investments. “More broadly speaking about banks, we are also thinking that investors are more hyper-focused on not only the Fed comments but other economic data that’s coming out.” Meanwhile, Visa shares dropped $13.76, or 6.2%, to $206.90 after The Wall Street Journal reported that the Justice Department is investigating whether the company is engaging in anticompetitive practices in the debit-card market. In other corporate news, FedEx rose $16.07, or 6.1%, to $279.58, after the package giant said its quarterly profit nearly tripled. Nike fell $5.68, or 4%, to $137.49, after the sneaker company reported revenue that fell short of analysts’ expectations due to shipping delays caused by container shortages and congestion at ports. Overseas, the pan-continental Stoxx Europe 600 fell 0.8%. Delays to the vaccine rollout in Europe are weighing on expectations for growth in the region, investors said. “From a macro sense, it is difficult to see how Europe is going to outperform,” said Seema Shah, chief strategist at Principal Global Investors. More on Markets In Asia, most major benchmarks fell. The Shanghai Composite Index declined 1.7%, and Hong Kong’s Hang Seng retreated 1.4%. The first high-level talks between the Biden administration and Chinese officials are ongoing in Alaska, with both sides trading criticism. Investors are nervous about a continuation of tensions between the two major economies. “The tone suggests that the U.S.-China relationship will be just as tense as with the previous U.S. administration,” Mrs. Shah said. “As we’ve seen in the last number of years, that tense relationship has meant that they will have a few more struggles than otherwise, and it also affects those around them and within their supply chains.” The major indexes have been choppy this week. Photo: Courtney Crow/Associated Press Write to Anna Hirtenstein at anna.hirtenstein@wsj.com and Amber Burton at Amber.Burton@wsj.com Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8