(CNBC) — U.S. stocks posted the biggest drop of this young year after the 10-year treasury yield shot higher, raising concerns higher interest rates would snuff out the bull market.
The S&P 500 declined 0.7 percent, only its fifth down day of the year and by far its biggest. The Dow Jones industrial average fell 158 points and was also on track for its biggest decline of 2018. The Nasdaq composite pulled back 0.6 percent.
The benchmark 10-year yield broke above 2.7 percent to reach its highest level since April 2014. Fears of higher inflation are sparking the sharp rise in bond rates this year.
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