Dow has fallen by at least 3%

NEW YORK (AP) – Stocks are slumping on Wall Street, erasing a rally from a day earlier, as markets assess the looming fallout from the Federal Reserve’s stepped-up fight against inflation.

The Dow fell 1,000 points, or 3%, and the S&P 500 fell 3.4%. Markets rallied a day earlier after the Fed said it wouldn’t move as quickly as some had feared to hike interest rates, but traders are starting to fret more about the impact of the Fed’s moves to dampen demand for borrowing money.

Bond yields resumed their upward march, which will send mortgage rates higher. The yield on the 10-year Treasury rose sharply, to 3.09%.