The Dow Jones Industrial Average fell more than 800 points Thursday as worries about rising interest rates again rattled markets.
A shaky day in the bond market appeared to spook equity investors, as the Dow industrials recently fell 828 points, or 3.2%, to 24065. The yield on the benchmark 10-year U.S. Treasury note was at 2.848%, near its highest level since January 2014, from 2.843% on Wednesday, according to Tradeweb.
Fears that a pickup in growth and inflation could force central banks to tighten monetary policy more quickly than expected have driven government-bond yields higher throughout the year. That, in turn, can pressure stock prices as fixed-income interest payments become more attractive than stock dividends.
Similar concerns sparked the tumble in stocks last week when data showed wage growth accelerating at the fastest rate since 2009—a sign that long dormant inflation could be picking up, analysts said. Since then, stocks have taken a wild ride, giving up January’s big gains and flirting with correction territory.