U.S. Stocks Slide as Bond Yields Surge on Strong Economic Report

U.S. stocks fell Wednesday after oil prices halted their decline and a strong economic report raised bond yields, causing pressure on the market.

The S&P 500 dropped 0.8 percent, with the Dow Jones Industrial Average plummeting 352 points or 0.7 percent, while the Nasdaq composite sank 1.1 percent from its all-time high.

A strong report on U.S. business activity surged to its strongest level in over five years, indicating potential for more inflation, which caused bond yields to jump to 5.10 percent from 4.96 percent late Tuesday.

The rise in the 10-year Treasury yield undercuts prices for stocks and other investments while slowing down the economy by making borrowing more expensive.