The Dow Jones Industrial Average trades near sessions lows late-morning Friday, with the drop putting the index on the brink of erasing its weekly advance. The Dow DJIA, -0.78% most recently, was down about 173 points, or 0.7%, at 26,446, unchanged for the week but in the red. Rising rates over the past 2 sessions have battered equity benchmarks as investors revalue investments that have benefited from a persistently low interest-rate atmosphere. The pace at rich rates may be attempting to normalize have unsettled some investors. The 10-year Treasury note TMUBMUSD10Y, +1.20% was yielding about 3.22% on Friday, around a seven-year high and sharply higher than the 3.055% where it ended last week. Richer yields mean elevated borrowing costs for corporations and individuals alike (and conversely better returns for savers). The broader market also was under pressure, with the S&P 500 index SPX, -0.63% down 0.5% and the Nasdaq Composite Index COMP, -1.29% off by 1%. Technology stocks have been particularly hit by the rate rising environment and disputed reports that China forced some tech companies to install secret chips in their products.
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