NEW YORK — U.S. stocks plunged Wednesday as investors ramped up their selling of high-flying technology and internet stocks. The Dow Jones Industrial Average fell 831 points, its worst loss in eight months.
Although the losses were widespread, stocks that have been the biggest winners on the market, including technology companies and retailers, suffered steep declines. Apple and Amazon both had their worst day in two and a half years.
The Nasdaq composite, which has a high concentration of technology companies, suffered its biggest loss in more than two years and has dropped almost 8 percent since the start of October.
Stocks have slumped over the last week as a combination of strong economic data and positive commentary from Federal Reserve leaders sent bond yields rocketing higher as investors bet that interest rates will keep rising.
Big moves in interest rates tend to unsettle investors, and they can also push them to sell stocks and buy bonds instead. And there is still an overhang from the U.S. trade dispute with China, which accounts for sizeable portions of some tech companies’ revenue.
Alec Young, managing director of global markets research at FTSE Russell, said investors fear that rising interest rates and growing expenses are going to erode the boost company profits have gotten from the GOP tax overhaul.
“The tax cuts juiced earnings this year and that’s not sustainable,” he said. “The market’s starting to say that the glass may be half empty.”
The Dow Jones Industrial Average gave up 831.83 points, or 3.1 percent, to 25,598.74. The S&P 500 index sank 94.66 points, or 3.3 percent, to 2,785.68. The benchmark index fell for the fifth straight day, which hadn’t happened since just before the 2016 presidential election.
The Nasdaq composite, with a large contingent of tech stocks, tumbled 315.97