"I think really the market is saying maybe no rate cuts in 2025, and that the 10-year could very easily break well above 5%," Jeremy Siegel said.

The Nasdaq Composite increased 243.30 points or 1.2% to close at 19,864.98, also booking back-to-back gains. The tech-heavy index is up 2.9% year to date, its best start to a year since 2009, when it rose 4.8%.

The Nasdaq dropped almost 2% and the S&P 500 lost 1%. Traders see potential for fewer rate cuts this year after the latest data.

When the December nonfarm payrolls report hit the tape, there was no question which way stocks would go at Friday's opening bell.