U.S. markets and stock exchange traded funds strengthened Thursday as Treasury yields dipped in response to muted labor market data. Technology and other growth stocks led the push higher.

On Thursday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 1.0%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) rose 0.2%, and iShares Core S&P 500 ETF (NYSEArca: IVV) was 0.4% higher.

Mega-cap technology companies are rallying as yields in the bond market pulled back, easing concerns over valuations in growth-heavy names.

“Rates going up was part of the reason why you had this broadening of the market and a bit of a rotation towards value stocks, especially financials and energy,” Ed Keon, chief investment officer at QMA, told the Wall Street Journal. “Now rates have eased off their highs, you’re seeing those sectors underperform and technology come back into the lead.”

Calming the bond markets, weekly initial jobless claims data revealed a second straight rise, which helped support the Federal Reserve’s dovish policy stance to keep interest rates lower for a substantial period, Reuters reports.

“The dynamic remains supportive for stocks,” Adrien Pichoud, a portfolio manager and chief economist at SYZ Private Banking, told the WSJ. “The Fed and central banks in general are perceived to be in no rush to raise rates.”

Federal Reserve Chair Jerome Powell previously stated that the central bank is nowhere near to reducing its support for the U.S. economy, pointing out that the spike in consumer prices may only be temporary.

“Both markets have been given the same communication and the same information, but the bond market is thinking that when inflation runs a little bit hot, the Fed is going to make certain changes,” Mike Zigmont, head of research and trading at Harvest Volatility Management, told Reuters. “And the equity market is thinking when inflation runs a little bit hot, the Fed will make no changes.”

For more news, information, and strategy, visit the Equity ETF Channel.