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Prospect of higher interest rates sends stocks, bonds lower

Trader Dennis Maguire works on the floor of the New York Stock Exchange, Friday, March 6, 2015. Stocks opened lower on Friday as another strong U.S. jobs report raised the likelihood that the Federal Reserve would start to raise interest rates later this year. (AP Photo/Richard Drew) Trader Dennis Maguire works on the floor of the New York Stock Exchange, Friday, March 6, 2015. Stocks opened lower on Friday as another strong U.S. jobs report raised the likelihood that the Federal Reserve would start to raise interest rates later this year. (AP Photo/Richard Drew)

By Associated Press March 6, 2015 1 min read

NEW YORK (AP) – The prospect of higher interest rates is sending U.S. stock and bond prices lower in midday trading.

Yields on long-term U.S. government bonds rose sharply Friday after the Labor Department reported a surge in hiring last month. That raised the likelihood that the Federal Reserve could raise rates this summer.

Stocks also fell, sending the Dow Jones industrial average down 200 points, or 1.1 percent, to 17,935 as of 11:45 a.m. Eastern time.

The Standard & Poor’s 500 index lost 22 points, or 1.1 percent, to 2,078. The Nasdaq fell 44 points, or 0.9 percent, to 4,938.

Apple rose 1 percent on news that the company would join the Dow, replacing AT&T. AT&T fell 1.5 percent.

The yield on the 10-year Treasury note jumped to 2.24 percent from 2.12 percent.