Big tech climbed in late hours as Tesla Inc. kicked off the “Magnificent Seven” earnings season with better-than-estimated results. Treasury yields rose amid bets the Federal Reserve will take a more measured approach on rate cuts.

Following a stock-market selloff, Wall Street pointed to a rebound led by its most-influential group. A $300 billion exchange-traded fund tracking the tech-heavy Nasdaq 100 gained after the close of trading. Tesla jumped 8% after reporting adjusted earnings of 72 cents per share for the quarter, above the average analyst estimate.The firm also said it expects to achieve slight growth in vehicle deliveries for the full year.

“Earnings season is heating up. We believe there is continued upside ahead for stocks, especially now that we are entering a seasonally strong period of the year for markets,” said David Laut at Abound Financial.

In other corporate news, International Business Machines Corp. declined after the company reported underwhelming revenue in the third quarter, hurt by a slowdown in consulting demand. T-Mobile US Inc. reported more monthly mobile-phone and broadband subscribers that analysts expected, leading it to raise forecasts for new customers and earnings this year.

The S&P 500 broke below 5,800 Wednesday. The Nasdaq 100 dropped 1.6%. The Dow Jones Industrial Average slipped 1%. Treasury 10-year yields rose to 4.23%. The dollar rose against all of its Group-of-10 peers. The yen hit the lowest in almost three months, reviving concern that Japan may intervene. The loonie slid after the Bank of Canada stepped up the pace of easing.

Investors face risks that could be making them less willing to jump into the market. The next three weeks capture big tech earnings, October’s payrolls report, and the US election, followed by the Fed meeting. In another sign of Wall Street’s skittishness, the term premium on 10-year Treasury notes — an expression of the extra yield investors demand for owning the debt rather than rolling over shorter-term securities — hit the highest since November.

To Jonathan Krinsky at BTIG, equities are finally noticing the moves in bonds and the dollar. That’s a stark contrast to the action in the last couple of weeks, with the bullish narrative being that bonds were re-pricing to where they should be based on the stronger-than-anticipated economy, he noted.

“While that might be fair in the big picture, markets are always concerned with the velocity of the move rather than the overall level, and the fact that stocks didn’t flinch in the face of those moves suggested complacency,” Krinsky said. “Whether this is the start of the pre-election jitters or not, we continue to see downside risk for equities broadly over the coming weeks, with an SPX pullback into the 5,500-5,650 zone a decent probability.”

The price of options that protect against an extended slump in Treasuries has soared to the highest this year amid concerns that losses may deepen.