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The yield on the 10-year Treasury note is 1 percentage point higher than it was May 3, when it hit a low for the year of 1.63 percent.
Investors "are used to having stability in their bonds and volatility in their stocks," Florance said. "In the next 18 months it could be exactly the opposite, with stability in the stock market and volatility in the bond market."
The S&P 500 is up 19.9 percent this year, and has gained nine out of the last 10 months.
In commodities trading, the price of oil fell 95 cents, or 0.9 percent, to $106.94 a barrel. Gold fell 70 cents, or 0.1 percent, to $1,310.50 an ounce.
The dollar fell against the euro and the Japanese yen.
Among other stocks making big moves:
— Viacom surged $4.81, or 6.5 percent, to $79.17 after the media company said its income rose 20 percent in the latest quarter, boosted by affiliate fee revenue its cable TV channels and higher advertising revenue. Viacom also increased its stock buyback program to $20 billion from $10 billion.
— American International Group, the insurer the government bailed out during the financial crisis, rose $1.26, or 1.3 percent, to $48.33 after the company said late Thursday that its profit grew 17 percent in the second quarter. AIG also announced its first dividend since 2008 and said its board had approved a $1 billion stock buyback plan.
— Weight Watchers International plunged $9.04, or 19 percent, to $37.99 after the company reported late Thursday that its second-quarter net income fell 16 percent. The company also named a new CEO and said recruitment trends are weak.