S&P 500 on track for longest losing streak in roughly 2 years as tech stocks retreat

U.S. stocks slumped Wednesday, with major indexes breaching key support levels and extending their downward spiral, as rising bond yields continued to weigh on market sentiment. Where are the major benchmarks trading?

The Dow Jones Industrial Average DJIA, -2.26% tumbled 408 points, or 1.5%, to 26,023. The S&P 500 index SPX, -2.39% lost 45 points, or 1.6%, to 2,835. The benchmark index is on track for its fifth straight daily drop, which would be its longest losing streak since November 2016.

The S&P fell below its 50-day moving average for its fourth straight session. The average is a closely watched technical level that is often seen as a proxy for short-term momentum trends. The benchmark index has dipped under it for three straight sessions, though each time it has rebounded to close above it. Should it end below the level on Wednesday, that would mark the first time it has done so since July, and it could be a catalyst for additional selling.

The Nasdaq Composite Index COMP, -3.01% fell 156 points, or 2%, to 7,582, trading below its 50-day moving average of 7,920.58.

The market’s losses were broad, with 10 of the 11 primary S&P 500 sectors lower, led by tech shares, which fell more than 2%. Among notable losers were Google-parent Alphabet Inc. GOOGL, -3.14% GOOG, -3.41% Microsoft Corp. MSFT, -3.94% and Apple Inc. AAPL, -2.94%

The Russell 2000 RUT, -1.93% an index for small-capitalization stocks, sank 1.2%, falling below its 200-day moving average. Market action has been driven by higher bond yields and interest rates, both of which could signal a new phase in postcrisis markets that have enjoyed a protracted period of ultralow yields.