Losses in technology and health care companies helped pull USA stocks lower, breaking an eight-day winning streak for the Dow Jones industrial average. The broad sell-off followed a slide in bond prices, which drove up yields, paving the way for higher borrowing costs on mortgages and other loans. Homebuilders fell sharply as a result. KeyCorp rose 1.5 percent. Among the worst performers on the S&P 500, Agilent Technologies (A) shares dropped almost 10% after the maker of medical instruments and other equipment posted quarterly earnings that matched forecasts late Monday.
The surge came after the Commerce Department said retail sales climbed 0.3 percent in April. The Nasdaq Composite closed at 7,351.63 for a loss of -59.69 points or -0.81%.
Technology and health care companies took some of the worst losses. Bond yields tend to rise when investors expect faster economic growth and higher inflation.
The rise in bond yields pulled down shares in real estate investment trusts and other high-dividend paying stocks.
Tuesday ended an eight-day run of consecutive gains for the Dow Jones.
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The proximate trigger for the rise in yields was the release of United States retail sales data, which contained some upward revisions to prior months, and an Empire manufacturing survey that showed the highest prices paid component since 2011. The yield on the 10-year Treasury rose to its highest since July 2011. The S&P 500 erased 18.68 points, or 0.68 percent, to 2,711.45.
The Nasdaq is down 51.26 points, or 0.7 percent.
Stocks are opening moderately lower across the board on Wall Street, led by declines in technology and consumer-focused companies.
US stocks dropped sharply on Tuesday after Home Depot reported quarterly sales that fell short of Wall Street's expectations and interest rates breached new highs. That yield is used to set interest rates on mortgages and other kinds of loans. Vaneck Vectors Semiconductor's stock rose 1.7% after the news. The Dow Jones Industrial Average lost 193.07 points, or 0.8%, to 24,706.34, putting an end to a 8-day rally, the longest since last September.