It will take more than a daily stock market correction to stop the Fed from hiking, said George Goncalves, managing director and head of fixed income strategy at Nomura in NY.
Luxury retailers tumbled. Tiffany plunged 10.2 percent to $110.38 and Ralph Lauren fell 8.4 percent to $116.96.
The increase in yields from these bonds - which are parcels of U.S. government debt - can hurt stocks since they will provide competition for investors' cash. Adams, of Bloomberg Intelligence, said investors have concerns about their future profitability, too.
The moves come as positive economic data - including the unemployment rate standing at 3.7 percent, its lowest level since 1969 - stoked investor fears that the Federal Reserve would raise rates aggressively to prevent the economy from overheating.
"Amazon recently announced they were increasing wages, Facebook is spending a ton on security", she said.
Innes, the Singapore-based head of Head of Trading for Asia Pacific with OANDA, attributed the slide to a combination of factors, including the possibility further interest rate hikes and the battle over tariffs between the US and China. Only 17 stocks in the S&P 500 wound up with a gain.
Amazon's stock plunged 6.1 percent while Apple's stock shed 4.6 percent in a late-day sell-off.
The crypto drop also appeared hours after United States stocks suffered a brutal decline on Wednesday. It was more than $40 five years ago.
United States crude settled down $1.79 at $73.17 per barrel and Brent fell $1.91 to settle at $83.09.
The Philadelphia Semiconductor index sank 2.64 percent, with Intel down 2.0 percent and Nvidia 4.7 percent. Natural gas rose 0.6 per cent to $3.28 per 1,000 cubic feet.
The Nasdaq composite rose 15 points, or 0.2 percent, to 7,436. Silver dipped 0.5 per cent to $14.33 an ounce.
Among the tech sector's worst performers in Europe, Austrian chipmaker AMS fell 5.9 percent and STMicroelectronics closed down 5.8 percent.
The CAC 40 in France dropped 2.1 percent, Germany's DAX lost 2.2 percent and the FTSE 100 in London fell 1.3 percent.
Japan's Nikkei 225 added 0.2 percent, South Korea's Kospi dropped 1.1 percent and the Hang Seng in Hong Kong gained 0.1 percent.
In further evidence that stocks can rally despite rising Treasury yields, LPL Research found that in all 12 periods of rising 10-year yields since 1996, the S&P 500 ended the period higher than it began, according to senior market strategist Ryan Detrick. The euro rose to $1.1525 from $1.1496.
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