Stocks fell sharply on Thursday as interest rates hit new multiyear highs, dampening investor sentiment.
The Dow Jones Industrial Average dropped 200.91 points to 26,627.48 as Nike and Home Depot lagged. The 30-stock index dropped 356 points at its lows of the day and posted its worst decline since Aug. 10.
The S&P 500 declined 0.8 percent to 2,901.61, notching its worst day since June 25, with communications and tech sectors both sliding more than 1.5 percent. The Nasdaq Composite dropped 1.8 percent — its biggest daily drop since June 25 — to 7,879.51 as Facebook, Netflix and Alphabet all dropped more than 2 percent.
The benchmark 10-year Treasury note yield reached its highest level since 2011, breaking above 3.2 percent.
"The level of the rates does not concern us," said Steve Chiavarone, portfolio manager at Federated Investors. "That said, moving more than 10 basis points in two days is a different story. Pace matters and it bears watching."