U.S. equities pulled back on Thursday as investors worried about rising interest rates.
The S&P 500 declined 0.1 percent to close at 2,821.98 after rising as much as 0.4 percent. The Nasdaq composite fell 0.4 percent to 7,385.86. Earlier, the tech heavy index traded 0.4 percent higher as Facebook shares hit an all-time high. Facebook reported better-than-expected earnings and revenue on Wednesday.
The Dow Jones industrial average closed 37.32 points higher at 26,186.71. It rose as much as 157.31 points and traded as much as 134.95 points lower.
"We've seen the bond market roll over for most of 2018," but we're seeing even more intense selling recently and that's driving yields higher, said Daniel Deming, managing director at KKM Financial. "Today we're seeing these bonds approach levels we haven't seen in a long time."
The benchmark 10-year yield rose to trade at 2.79 percent, while the 30-year bond yield topped 3 percent for the first time since May.
Thursday marked the first day of the new month. January was the best month for the S&P 500 and Dow since March 2016, while the Nasdaq composite had its biggest one-month gain since October 2015. The S&P 500 also notched its best January performance since 1997.
Historically, strong January gains have led to solid gains in the equity market for the rest of the year, according to Howard Silverblatt, senior Index analyst at S&P Dow Jones Indices.
Stocks were under pressure earlier after the release of weaker-than-expected productivity numbers. The U.S. government said in a preliminary report that fourth-quarter productivity fell 0.1 percent. Economists polled by Reuters expected a gain of 1 percent.