Stocks dipped for a second day on Wednesday and rates soared to new heights as investors bet the Federal Reserve is about to aggressively tighten policy to fight inflation, and in turn slow the economy.
The Dow Jones Industrials crumbled 233.45 to 34,407.73.
The S&P 500 slumped 55.96 points, or 1.2%, to 4,469.16
The NASDAQ Composite fell 338.91 points, or 2.4%, to 13,865.26.
Tech shares fell again on Wednesday following Tuesday's losses, as investors rotated out of the group and braced for higher rates to slow the economy.
Apple, Microsoft, Amazon and Tesla contributed to the sector's declines and led the NASDAQ to fall again Tuesday.
Meanwhile, Twitter shed 3% after rallying this week amid news that Elon Musk purchased a large stake in the company, and chipmakers Nvidia and Marvell Technology continued their descent on Wednesday, falling about 3%. As the Federal Reserve hikes rates investors have begun searching for stocks with stable profits and shying away from those offering future growth.
Utilities, health-care and consumer staples sectors continued to climb Wednesday, with Amgen, Merck and Johnson & Johnson all rising about 2%. Consumer staples such as Walmart and Procter & Gamble also inched slightly higher along with telecom giant Verizon.
Investors await minutes from the Fed's most-recent meeting slated for release Wednesday afternoon, which could impact investors' outlook and offer new clues to the Fed's plan to reduce its balance sheet.
It comes after comments from Fed officials knocked down stocks on Tuesday. The minutes come from last month's meeting when the central bank raised rates and indicated six more hikes were coming this year.
Treasury prices fell as yields spiked to 2.61%, from Tuesday's 2.55%. Treasury prices and yields move in opposite directions.
Oil prices gained 41 cents to $102.37 U.S. a barrel.
Gold prices picked up $3.40 to $1,930.90 U.S. an ounce.
Stocks Fall for 2nd Straight Day