Stocks Ended Sharply Lower as Bond Yields Surged

U.S. stocks ended sharply lower on Thursday, with the Nasdaq dropping 3.5% for worst day since October, as a rapid rise in Treasury yields spooked equity investors. The Dow Jones Industrial Average fell 559.85 points, or 1.75%, to 31,402.01. The S&P 500 declined 96.09 points, or 2.45%, to 3,829.34. The Nasdaq Composite dropped 478.54 points, or 3.52%, to 13,119.43.

Oil futures were mixed on Thursday, with the U.S. benchmark posting its highest close in nearly 22 months, while global benchmark Brent crude suffered its first loss in four sessions. West Texas Intermediate crude for April delivery rose 31 cents, or 0.5%, to settle at $63.53 a barrel. April Brent crude contract lost 16 cents, or 0.2%, to $66.88 a barrel.

The 10-year Treasury note yield surged above the 1.50%, later ending at 1.51%, up around 16 basis points since last Friday’s close.

Pending home sales unexpectedly fell on a month-over-month basis in January, dropping by 2.8%, the National Association of Realtors reported on Thursday.