Market Tests Investors’ Nerves as Stocks Sell Off After Auction

Investors dumped US stocks Wednesday afternoon following a disappointing Treasury auction that sent bond yields surging past levels seen during April’s market rout.

The S&P 500 Index slid 1.6%, while the technology-heavy Nasdaq 100 Index declined 1.3%. US equities had been holding up earlier in the session on the strength of Big Tech, despite fresh signs American consumers have started curbing some purchases. The rise in Treasury yields following the troubling 20-year auction added to the angst, as the 30-year rate soared above 5%. The Cboe Volatility Index, or VIX, also crossed 20.