A bad week on Wall Street turned dismal Thursday after the relentless surge in Treasury yields sapped demand for risk assets. In the end, US stocks suffered the biggest drop in six months as investors recalibrate for a world where rates sit at levels not seen in a generation.
The S&P 500 plunged 1.6% and the Nasdaq 100 fell almost 2%. The two indexes are on track for the worst quarter in a year. The 10-year Treasury yield pushed toward 4.5%, up more than 30 basis points in just three weeks. Leading the way down for equities were profitless technology companies, a group whose lofty valuations have become harder to justify as investors turn to other asset classes for returns.