Steep losses in technology shares dragged down the S&P 500 on Tuesday as a continuous rise in bond yields dented the appetite for growth stocks.
The Dow Jones Industrials dropped 179.85 points to 31,341.84.
The S&P 500 sank 34.58 points to 3,841.92.
The NASDAQ Composite descended 292.53 points, or 2.2%, to 13,240.52, as Tesla shares slid 8.6%. Big Tech stocks came under pressure with Apple, Amazon and Microsoft all dropping at least 2%.
All eyes will be on Federal Reserve Chairman Jerome Powell, who delivers his semi-annual testimony on the economy before the Senate Banking Committee on Tuesday. His comments on rates and inflation could determine the market direction for the week.
On the pandemic front, the White House said that it expects to ship out millions of delayed coronavirus vaccine doses this week after a sweeping winter storm disrupted logistics. Gov. Andrew Cuomo said on Sunday that a New York resident has tested positive for the COVID-19 variant first identified in South Africa.
Prices for 10-Year Treasurys lost some ground, raising yields to 1.37% from Monday's 1.36%. Treasury prices and yields move in opposite directions.
Oil prices dipped 29 cents to $61.41 U.S. a barrel.
Gold prices slid $7.10 to $1,801.30