The S&P 500 fell 1.3% to 3,819.72 as tech stocks took a hit on Wednesday despite the names tied to economic recovery providing some support. Nasdaq Composite shed 2.7% to 12,997.75 as Apple, Amazon, Microsoft, and Alphabet declined more than 2%.
Netflix traded 5% lower in a session that saw the Dow Jones Industrial Average end the day near lows of 31,270.09 after shedding 0.4%.
The weaknesses in tech stocks came as the 10-year Treasury yield extended its advance, with the benchmark rate gaining more than 8 basis points to a high of 1.49%.
The continuous rise in bond yields raises concerns about equity valuations and pickup in inflation.
High bond yield could weigh down on tech stocks as they rely on easy borrowing for superior growth.
Growing optimism over the vaccine rollout rallied cyclical stocks, with American Airlines up 3.4%, while Carnival and Norwegian Cruise Line gained 3.9% and 6.3%, respectively.
U.S stocks are currently declining. S&P 500 is down 1.31%, NASDAQ is down 2.70%, DJI is down 0.39%.