Author: DAMIAN J. TROUISE (AP Business Writer)

NEW YORK (AP) — Stocks fell sharply on Wall Street Thursday, with Treasury yields hitting multiyear highs again, a day after the Federal Reserve said its fight against inflation is far from over.

The S&P 500 was down 0.7% as of 10:28 a.m. ET. The Dow Jones industrial average fell 134 points, or 0.4%, to 32,015, while the Nasdaq fell 0.8%.

Technology stocks were among the biggest weights in the market. Apple fell by 2.8%.

The yield on the 10-year Treasury rose to 4.15% from 4.09% late Wednesday. Bond yields hover around multi-year highs as the Fed raises interest rates. That has seen mortgage rates more than double this year, and that continues to put pressure on stocks.

The Fed added another giant rate hike on Wednesday and suggested the pace of rate hikes may slow. The central bank also indicated that interest rates may eventually be even higher than previously thought to curb the worst inflation in decades.

The central bank’s latest hike of three-quarters of a percentage point pushed short-term interest rates to a range of 3.75% to 4%, the highest level in 15 years. Wall Street is evenly split on whether the central bank will raise rates to a range of 5% to 5.25% or 5.25% to 5.50% next year.

Higher rates not only slow the economy by discouraging borrowing, they also make stocks less attractive compared to lower-risk assets like bonds and CDs.

Stubborn inflation is pushing central banks around the world to raise interest rates as well. On Thursday, the Bank of England announced the biggest interest rate hike in three decades. The increase was the Bank of England’s eighth in a row and the biggest since 1992.

European and Asian markets were lower.

Investors were hoping for economic data that suggested the Fed might moderate rate hikes. The fear is that the Fed will go too far in slowing the economy and lead to a recession.

Hotter-than-expected employment data this week suggests the Fed should remain hawkish. On Friday, Wall Street will receive more comprehensive monthly employment data from the US government.

Wall Street has also been keeping a close eye on the latest corporate earnings reports. The reports were mixed, with many companies warning that inflation was likely to continue to put pressure on operations.

Booking Holdings rose 3.7% after reporting strong third-quarter financial results. Chipmaker Qualcomm fell 9.7% after giving investors weak profit and revenue guidance.

Joe McDonald and Matt Ott contributed to this report.

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