U.S. stocks slumped Wednesday as technology stocks continued falling and government bond yields ticked higher.
The S&P 500 fell 0.5%. The Nasdaq Composite fell 1%, pointing to declines in technology stocks for a second day. The Dow Jones Industrial Average edged down less than 0.1%.
The yield on the 10-year U.S. Treasury bond ticked up to 1.476%, from 1.413% on Tuesday. That is still down from the 1.513% it hit last month. Yields rise when bond prices fall.
Stocks have been jittery in recent days, with the major indexes wavering daily between losses and gains. Some money managers have grown concerned that stimulus measures will lead to a spike in inflation and erode the value of bond returns. Worries about inflation have also triggered bets that the Federal Reserve may start to boost interest rates in the next two years.
Top central bank officials have said the rise in yields reflects optimism about economic prospects and that they plan to keep monetary policy loose to support the economy for the foreseeable future. Federal Reserve Gov. Lael Brainard said Tuesday that the recent tumult in the bond market is on her radar. She said she would be concerned if she “saw disorderly conditions or persistent tightening.”