The Dow Jones Industrial Average declined 193 points, or 0.78%, to 24,706, ending its eight-session winning streak.
A surge in USA government bond yields to their highest level in nearly seven years sent Wall Street shares sliding on Tuesday after strong retail sales data stoked inflation concerns and investors fretted about looming trade talks between the United States and China.
Higher borrowing costs sent stocks sharply lower.
Some banks got a boost from higher rates, which make loans more profitable.
The S&P 500 is up 37.84 points, or 1.4 percent.
The S&P 500 fell 18 points, or 0.7 percent, to 2,711. The blue-chip Dow Jones grew by 68.24 points, with UnitedHealth and Walmart being the best-performing stocks in the index. Meanwhile the Nasdaq Composite declined 59.69 points, or 0.8% to 7,351.63. The Russell 2000 was down only 0.1% thanks mainly to relative strength in small-cap banks. Sectors leading losses for the day included real estate, health care and technology. Gold fell $27.90, or 2.1 percent, to $1,290.30 an ounce.
The yield on the 10-year Treasury rose to 3.07 percent from 3 percent late Monday.
The S&P 500 rose by 0.1% and closed at 2,730.13 points, with energy, health and resource makers increasing most.
Core April retail sales - which excludes gasoline, automobiles, building materials and food services - rose at a brisker 0.4 percent monthly pace over March, as consumer spending is quickening its pace after a first-quarter slowdown. The Nasdaq composite fell 60 points, or 0.8 percent, to 7,349.
Stocks struggled to a mixed finish on Wall Street as weakness in smaller-company stocks offset gains in large companies.
USA stocks ended lower on Tuesday as the closely-watched 10-year Treasury yield reached new highs.
The benchmark 10-year note's yield climbed to 3.09% in afternoon trading, and it is up more than 67.1 basis points in 2018, according to data from bond platform Tradeweb. That yield is used to set interest rates on mortgages and other kinds of loans. The VIX Volatility Index was higher at 14.57 with a gain of 1.64 points or 12.68%.
Viacom slumped 6 percent and CBS rose 4 percent after CBS sued to block efforts to force the company combine with Viacom.