Investors are worried the Federal Reserve will keep interest rates higher for longer to kill off inflation, and that's dragged stocks lower.
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Several big-name stocks have fallen to their lowest levels in a year this week, with lingering worries about inflation and the bond rout driving a broader financial market sell-off.
The Coca-Cola Company and Bank of America have both seen their share prices drop to 52-week lows over the past five trading sessions, with the benchmark S&P 500 index down around 0.7% over the same period.
Banking giant Citigroup, Coke rival Keurig Dr Pepper, carmaker General Motors, and US conglomerate 3M are also trading at their lowest levels since October 2022.
Stocks' stellar first-half rally has ground to a dramatic halt in recent months, with the S&P 500 dropping 7% since July 31.
The tech-heavy Nasdaq Composite is down 8% over the same period, while the Dow Jones Industrial Average has shed 2,400 points to wipe out all its gains for the year.
The losses have come with investors fretting that the Federal Reserve will hold interest rates at their current level of nearly 5.5% well into 2024 in a bid to kill off inflation.
Stocks tend to struggle when borrowing costs are high, as investors are able to find similar returns for less risk elsewhere, such as by parking their cash in a savings account.
The bond market has felt the pain even worse, with yields on 10-year US Treasury notes nearing 5% for the first time since 2007 and longer-duration debt cratering at a rate that rivals some of the worst crashes in market history.
