NEW YORK • The Nasdaq recovered as the bond rout retreated on Friday, but most other equity markets around the world swooned as data showing a strong rebound in United States consumer spending kept fears of rising inflation alive.

Shares of Amazon, Microsoft and Alphabet edged up after bearing the brunt of last week's downdraft to help the Nasdaq shake off its worst day in almost four months on Thursday.

The Nasdaq Composite advanced 0.56 per cent while the S&P 500 slipped 0.48 per cent after a late-session surge failed to hold. The Dow Jones Industrial Average fell 1.51 per cent.

US consumer spending rose by the most in seven months in January as low-income households got more pandemic relief money and new Covid-19 infections dropped, setting up the US economy for faster growth ahead.

The benchmark 10-year Treasury note on Thursday shot to a one-year high of 1.614 per cent, a move that rocked world markets. The note's yield is up more than 50 basis points this year and is now close to the dividend return of S&P 500 stocks.

Yields on the 10-year note fell steadily throughout the session to trade 11.7 basis points lower at 1.3981 per cent.

In Europe, the broad FTSEurofirst 300 index closed down 1.64 per cent at 1,559.48.

Technology stocks lost the most as they continued to retreat from 20-year highs.

The heaviest selling earlier was in Asia, with MSCI's broadest index of Asia-Pacific shares outside Japan sliding more than 3 per cent to a one-month low, its steepest one-day percentage loss since the market rout in late March.

REUTERS