U.S. stocks fell as volatility in Treasury yields sparked concerns about mortgage rates and corporate credit costs.

The Dow Jones Industrial Average fell 341.41 points, 0.66%, to 51179.87. The S&P 500 lost 17.16 points, or 0.22%, to 781.77, falling from a record high. The tech-heavy Nasdaq Composite slipped 61.20 points, or 0.22%, to 27538.69.

Stocks were down sharply in early trading after a recent spike in Treasury yields intensified. Stocks pared losses when the yields eased in the wake of a strong auction.

The yield on the two-year Treasury declined 0.027 percentage point to 4.762%. The yield on the 10-year Treasury note rose 0.006 percentage point to 5.276%. The yield on the 10-year hit a 24-year high of 5.361% before a well-subscribed auction of the notes. The yield on the 30-year bond rose 0.020 percentage point to 5.660%, on the verge of its highest level since 2002.

The worldwide "bond bear market" in 2026 is largely a response to changing central-bank policy, said strategists at brokerage Bank of America Global Research, in a note to clients.

Most Fed officials anticipated another rate hike this year during discussions at the September meeting, according to minutes released Wednesday. Some officials cast the plan as insurance against future inflation issues rather than a response to current conditions, however.

The bond moves are causing pain in the mortgage market. The average fixed 30-year mortgage rate in the U.S. was 7.52%, hovering around three-year highs, according to Bankrate.

The SPDR S&P Homebuilders exchange-traded fund, which tracks a basket of builders, fell by more than 2.5% and is now down by more than 8% for the year to date.