A rout in technology companies pulled the Nasdaq down 3.5% Thursday, the biggest loss for the tech-heavy index since last October. The Dow Jones Industrial Average lost a more modest 1.8%, a day after the blue chip index set a record high.
A steady march higher in Treasury yields has been drawing money out of the stock market and leading investors to question whether the massive run-up in Big Tech valuations in recent months has been excessive. Bond yields are rising as investors anticipate more stimulus from Washington, greater economic growth and possibly a pickup in inflation.
The S&P 500 fell 96.09 points, or 2.4%, to 3,829.34.
The Dow Jones Industrial Average fell 559.85 points, or 1.8%, to 31,402.01.
The Nasdaq fell 478.54 points, or 3.5%, to 13,119.43.
The Russell 2000 index of smaller companies fell 84.21 points, or 3.7%, to 2,200.17.
For the week:
The S&P 500 is down 77.37 points, or 2%.
The Dow is down 92.31 points, or 0.3%.
The Nasdaq is down 755.03 points, or 5.4%.
The Russell 2000 is down 66.52 points, or 2.9%.
For the year:
The S&P 500 is up 73.27 points, or 2%.
The Dow is up 795.53 points, or 2.6%.
The Nasdaq is up 231.15 points, or 1.8%.
The Russell 2000 is up 225.32 points, or 11.4%.