Stocks rose Friday as Treasury yields eased from their recent highs and investors weighed the cumulative impact from Fed hikes already implemented and digested this week's comments from the central bank.

The Dow Jones Industrial Average rose 387.40 points, or 1.17%, to 33,390.97. The S&P 500 climbed 1.61% to 4,045.64, and the Nasdaq Composite gained 1.97% to close at 11,689.01.

The yield on benchmark 10-year Treasury note dipped below the 4% threshold. Traders have been watching 4% as the key level on the 10-year that could trigger another down move in stocks. At times this week when the 10-year rate rose above that point, stocks retreated.

The 10-year Treasury is a benchmark rate that influences mortgages and car loans, so a breakout in the yield could ripple through the economy.

"The stock market is very sensitive to bond yields at this point and looking for some respite to the recent upward moves in yields," said Yung-Yu Ma, BMO Wealth Management chief investment strategist. "There's a nervous anticipation to upcoming data releases for jobs and inflation after the difficult readings last month. The market is unlikely to have sustained traction until data points resume a cooling trend."

All of the major averages notched a winning week. The Dow posted a 1.75% gain and snapped a four-week losing streak. The S&P 500 closed up 1.90% on the week and its first positive week in the last four. The Nasdaq ended the week 2.58% higher.

Market sentiment got a boost Thursday after Atlanta Fed President Raphael Bostic said he thinks the central bank can keep its interest rate hikes to 25 basis points rather than the half-point increase favored by some other officials.

However, Fed Governor Christopher J. Waller struck a tougher tone in his comments to the Mid-Size Bank Coalition of America, raising the possibility of a higher terminal rate if inflation numbers don't cool. He referred to January's big payrolls report, which showed the economy added 517,000 jobs, as well as the latest reading from the consumer price index and personal consumption expenditures reports.

"If those data reports continue to come in too hot, the policy target range will have to be raised this year even more to ensure that we do not lose the momentum that was in place before the data for January were released," Waller said.

Correction: An earlier version of this story misstated the weekly gain for the Nasdaq Composite.

The major averages close higher

Stocks closed higher on Friday, pushing the major averages to a winning week.

The Dow Jones Industrial Average rose 387.40 points, or 1.17%, to 33,390.97. The S&P 500 climbed 1.61% to 4,045.64, and the Nasdaq Composite gained 1.97% to close at 11,689.01.

For the week, the Dow ended up 1.75%. The S&P added 1.9% and the Nasdaq jumped 2.58%.

— Tanaya Macheel

Aerospace & Defense ETF trading at highest level since 2020

The iShares US Aerospace & Defense ETF (ITA) ticked up about 0.6% to hit its highest level since Feb. 20, 2020 on Friday, and is now up nearly 2% for the week.

This will be its third weekly gain in four, as the aerospace & defense sector appears to have found its footing after underperforming in January.

The ITA is now up 5.2% year to date.

— Jesse Pound, Nick Wells

Silvergate recovers earlier losses, Goldman Sachs moves it to a suspended rating

Silvergate shares rose 3% after falling as much as 10% earlier in the day and ending the previous session down more than 57%.

The move higher coincided with a broader stock market climb. All of the major averages were on track to post a 1% by the mid-afternoon.

Nevertheless, investors will continue to monitor the fallout of the crypto bank that warned this week that it may not be able to operate another 12 months. Goldman Sachs moved Silvergate to a suspended rating Friday morning, saying it doesn't have enough information on the stock.

The stock is still down almost 60% for the week.

— Tanaya Macheel

Wells Fargo says UPS has underappreciated earnings growth potential

The United Parcel Service could see earnings growth not expected by some in the investing world, according to Wells Faro.

In a note upgrading her price target, analyst Allison Poliniak-Cusic said investments and cost-saving initiatives coming this year could set the stage for earnings growth in 2024 or sooner.

"UPS is making substantial investments in 2023," Poliniak-Cusic said in a note to clients Friday. "In 2024 not only should those investment headwinds fade, but they should generate incremental profit."

CNBC Pro subscribers can read more here.

— Alex Harring

Formula One shares hit all-time high head of first race of 2023

Shares of Formula One rose more than 2% on Friday, reaching a record high. The move comes ahead of the 2023 season's first race in Bahrain, which is slated for Sunday. Formula One share have outperformed to start the year, surging more than 25%.

Morgan Stanley analyst Benjamin Swinburne noted Thursday, "We believe F1 is the fastest growing global sport and that growth is expected to drive 10-15% adjusted EBITDA compound annual growth rate from 2022 to 2026."

"Our OW on FWONK reflects 1) our bullish view on sports as an asset class, 2) F1's rising global popularity and its ability to monetize that growth, and 3) a preference for contracted revenues (defensive growth) given the current macroeconomic uncertainty," he added.

— Fred Imbert, Chris Hayes, Michael Bloom

Market should rally in March and April, Fundstrat's Tom Lee says

The recent market downturn should end and give way to a rally over the next two months, said Tom Lee, managing partner at Fundstrat.

"The softness in equities since mid-February has not yet reversed, but we believe the window is soon emerging where this softness will give way to an 8-week period where equities will rally strongly," Lee said in a note to clients Thursday. 

That would mark a change from February, when the major indexes end down and ended January's rally. He said the turnaround will largely come from new economic data that will show cooling in inflation and the labor market.

CNBC Pro subscribers can read the full story here.

— Alex Harring

Stocks making the biggest moves midday

Check out the companies making headlines in midday trading.

Meta — Shares of the tech giant rose more than 5% after the tech giant announced a dramatic price drop for its higher-end virtual reality headset, the Quest Pro. Wall Street also got bullish on Meta's artificial intelligence potential.

Costco Wholesale — The retailer's shares dropped 3.4% after the company's fiscal second-quarter earnings missed analysts' expectations.

Apple — The technology giant advanced 2.6% after Morgan Stanley reiterated its top pick rating, noting the stock has a "catalyst-rich event path" over the next year. Th

Check out the full list here.

— Hakyung Kim

JPMorgan upgrades Procter & Gamble, citing earnings inflection ahead

JPMorgan is excited about Procter & Gamble as the Tide and Downy parent regains its status as an earnings compounder.

Analyst Andrea Teixeira upgraded the Tide and Pampers parent to overweight from neutral. She also raised her price target by $5 to $155, which implies the stock could advance 10.8% from Thursday's close.

"While we previously viewed PG's brand equity, strong marketing capabilities, and supply chain excellence/resilience positively in the current operating environment, we now believe the setup is more favorable as consumers remain resilient and PG will become an earnings compounder in 2HCY23 when cost pressures abate," Teixeira said in a note to clients Friday.

CNBC Pro subscribers can read the full story here.

— Alex Harring

First Solar can rally more than 25% due to IRA tax credits

First Solar gained 1.5% in premarket trading after UBS said it could be one of the biggest beneficiaries of the Inflation Reduction Act.

Analyst Jon Windham upgraded the stock to buy from neutral. He also raised the price target to reflect a potential upside of 26.1% of where the stock closed Thursday.

"We upgrade shares of FSLR from Neutral to Buy and within our coverage see FSLR as the most significant beneficiary of the Inflation Reduction Act," he said in a note to clients Friday.

CNBC Pro subscribers can click here to read more.

— Alex Harring

Brent oil prices fall on reports UAE is considering an OPEC departure

Relations between Saudi Arabia and the United Arab Emirates growing more tense, according to a report by the Wall Street Journal. Citing Emirati officials, the report said the UAE is debating whether it should depart OPEC.

The news of the potential rupture in the oil cartel put a chill on Brent crude prices. At one point in Friday trading, prices had fallen nearly 3%, before recovering. Recently, the global benchmark was down 0.85% at $84.03.

The two oil producing nations have been jockeying for influence and disagree over the direction of the Yemen war, according to the report.

—Christina Cheddar Berk

Stocks open higher

U.S. equities opened higher Friday.

The Dow Jones Industrial Average rose 117 points, or 0.35%. The S&P 500 climbed 0.42% and the Nasdaq Composite gained 0.54%.

Those moves come as U.S. Treasury yields retreated, with the yield on benchmark 10-year Treasury note dipping below the key 4% level.

All of the major averages were on pace for a winning week.

— Tanaya Macheel

Stocks making the biggest moves premarket

Here are three companies making headlines before the bell:

• C3.ai — Shares surged 17% after C3.ai reported third-quarter results that topped expectations. The enterprise artificial intelligence company posted a narrower-than-expected loss of 6 cents per share ex-items, compared with estimates for a 22 cent loss, according to Refinitiv. It also reported revenue of $66.7 million, surpassing expectations of $64.2 million.
• ChargePoint Holdings — Shares plummeted 11% after ChargePoint Holdings reported a quarterly revenue miss. The electric vehicle infrastructure company posted revenue of $152.8 million in the fourth quarter, less than the forecasted $164.6 million, according to consensus estimates from FactSet. The company also issued lackluster guidance.
• Zscaler — Shares of the cybersecurity company slid 11% in premarket trading despite Zscaler beating estimates on the top and bottom lines for the fourth quarter. The company earned an adjusted 37 cents per share, above the 29 cents expected by analysts, according to Refinitiv. However, several analysts pointed to billings guidance as a sign of weakness, with Stifel analyst Adam Borg saying in a note to clients said that the guidance was "muted."

Read the full list here.

— Sarah Min

Bitcoin and ether slide following latest Silvergate woes

Cryptocurrency prices fell on Friday as investors weighed the latest financial woes at Silvergate Capital and assessed what a potential bankruptcy at the crypto bank could mean for the broader crypto industry.

Bitcoin was last lower by about 5% at $22,314.67, according to Coin Metrics. Ether fell 5% to $1,565.31.

The drop came after several crypto companies said they'd stopped accepting or initiating payments to or from Silvergate, which has become the go-to bank for cryptocurrency businesses. Bitcoin and ether prices remained flat throughout Thursday, while shares of Silvergate dropped 57%.

— Tanaya Macheel

Morgan Stanley sees big gains for Apple

Morgan Stanley said Friday that Apple shares could rally 20%, noting that investors should look beyond near-term headwinds for the tech giant.

"If we look beyond the near-term, we see a catalyst-rich event path over the next 12 months that is underappreciated by investors, including reaccelerating iPhone and Services growth, record gross margins, two new product launches, and the potential introduction of an iPhone subscription program," Morgan Stanley said.

— Alex Harring

Weaker jobs market could lead to risk-on trade, David Rosenberg says

David Rosenberg, chief economist and strategist of Rosenberg Research, believes the stock market would see a sustained rally when the labor market starts to contract in three to four months.

"Right now you've got a situation where the stock markets and the credit markets seem to think that they have more time that they can buy before the boom really gets lowered on the economy," Rosenberg said on CNBC's "Fast Money" Thursday.

"There's no doubt the economy is not strong, but it has to weaken precipitously. Unemployment has to start contracting... I think that's where you're going to find the risk on trade," he added.

The employment picture started off 2023 on a stunningly strong note, with nonfarm payrolls posting their biggest gain since July 2022. The Federal Reserve could reverse its tightening policy when the jobs market shows weakness.

— Yun Li

Stocks making the biggest moves during after hours

Check out the companies making headlines after the bell.

Zscaler – Shares of the cloud security company tumbled more than 11% in after-hours trading. Though the company trounced analysts' estimates on the top and bottom lines for the fiscal second quarter, it narrowly beat expectations for billings, according to FactSet. Billings for Zscaler came in at $493.8 million, compared to FactSet's estimates of $491.4 million.

C3.ai — The enterprise artificial intelligence company's shares jumped 15% after its fiscal third-quarter results beat Wall Street's estimates, according to Refinitiv. The company posted a loss of 6 cents per share, compared to analysts' estimates for a 22 cent loss. It also reported revenue of $66.7 million, exceeding expectations of $64.2 million.

Dell Technologies — Dell shares gained nearly 3% after its fourth-quarter earnings and revenue topped Wall Street's estimates. The tech company's adjusted earnings were $1.80 per share, higher than the consensus estimate of $1.63 from analysts polled by Refinitiv. Dell's revenue also exceeded expectations, coming in at $25.04 billion versus analysts' estimates of $23.39 billion.

See the full list here.

— Hakyung Kim

Stock futures open lower

U.S. stock futures opened lower on Thursday night.

Dow Jones Industrial Average futures dipped 12 points, or 0.04%. S&P 500 and Nasdaq 100 futures fell0.07% and 0.18%, respectively.

The major averages are on their way to a positive week. The S&P 500 is up 0.28%, while the Nasdaq has a 0.60% gain. The Dow is up 0.57% on the week.

— Hakyung Kim