The Nasdaq Composite sank 1.9% to 14,648.53 in early Monday afternoon trading, with S&P 500 down 1.4% and the Dow Jones Industrial Average 1.1% lower.
All sectors were in the red on an intraday basis. Technology and consumer discretionary -- home to some of the fastest-growing companies in the US -- not only led decliners but were also among the worst performers last week.
The 10-year US Treasury yield was up less than one basis point to 1.77% after touching 1.81% earlier in the session, its highest intraday level since January 2020.
The 10-year yield, which ended last year at 1.52%, surged to about 1.76% by the end of last week, a 24 basis-point jump in just five days.
"The speed of rate moves matters for equity returns," Goldman analysts, including David Kostin, said in a research note. "Equities typically struggle when the 5-day or 1-month change in nominal or real rates is greater than two standard deviations. The magnitude of the recent yield backup qualifies as a 2+ standard deviation event in both cases."
West Texas Intermediate crude oil dropped $0.95 to $77.95 a barrel.
In company news, Moderna (MRNA) said advanced purchase agreements for 2022 delivery rose to $18.5 billion, up from $17 billion previously. Shares of the vaccine maker, whose product sales for 2021 hit $17.5 billion, surged 9.2% intraday, the most on S&P 500 and Nasdaq.
Take-Two Interactive Software (TTWO) said it struck a deal to acquire Zynga (ZNGA) for $9.86 per share in a cash-and-stock deal that values the mobile game developer at $12.7 billion. Shares of Take-Two Interactive plummeted 13% intraday, the worst performer on Nasdaq.
HSBC downgraded Nike (NKE) to hold from buy, with a price target of $182 per share.
Wedbush said in a research note Adidas sub-brand Yeezy drove the increase in product launches during the holiday selling period of December as it offered 11 new products last month. In contrast, Nike (NKE) missed that pace year on year. Nike's shares dropped 5.2% intraday, the steepest decliner on the Dow.
Gold was up less than 0.1% to $1,798.95, silver was up 0.4% to $22.44 an ounce, and copper was down 1.3% to $4.35 per pound in metals markets trading. Among energy ETFs, the United States Oil Fund was down 1% to $56.13, and the United States Natural Gas Fund was up 4.6% to $13.62.
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