Tech pulls stocks lower as bonds continue rise

NEW YORK — Technology companies led another broad sell-off on Wall Street on Thursday as a spike in bond yields put more pressure on the market’s high-flying stocks.

The S&P 500 was fell 1.3%, its third straight loss. The benchmark index, which briefly dipped into the red for the year, is on track for its third consecutive weekly loss. Just four days ago it notched its biggest gain since June. That market rally was driven by what now appears to be a brief pause in the recent, swift rise in bond yields, which in turn pushes up interest rates on loans for consumers and businesses.

The latest losses came as the yield on the 10-year Treasury rose sharply during a question-and-answer session with Federal Reserve Chair Jerome Powell during which Powell said inflation will likely pick up in the coming months. He cautioned that the increase will be temporary, and won’t be enough for the Fed to alter its low-interest rate policies.

The remarks, signaling a waitand-see stance on the surge in bond yields, failed to ease investors’ concerns that stronger growth will lead to higher inflation, which unchecked can slow economic growth.

“You have a context where rates have moved quite rapidly the last few days, so the market is generally on edge and looking for more reassurance in the short term,” said Lisa Erickson, head of traditional investments at U.S. Bank Wealth Management.

The S&P 500 fell 51.25 points to 3,768.47. The Dow Jones Industrial Average lost 345.95 points, or 1.1%, to 30,924.14. The Nasdaq composite dropped 274.28 points, or 2.1%, to 12,723.47. The pullback knocked the tech-heavy index into the red for the year.

Small-company stocks fell even more. The Russell 2000 index of smaller companies gave up 60.87 points, or 2.8%, to 2,146.92.