By Mark DeCambre
U.S. stock benchmarks closed sharply lower Wednesday, with the Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +1.51% finishing at correction for the first time since March 8, as sharply higher bond yields and elevated inflation rattled investors for another session.
Banks stocks also remained in the spotlight, with Morgan Stanley /zigman2/quotes/209104354/composite MS +0.33% and Bank of America /zigman2/quotes/200894270/composite BAC +0.53% reporting quarterly results.
The Nasdaq Composite closed down 1.2% to reach 14,340, sinking more than 10% from its Nov. 19 peak and meeting the commonly used definition for a correction.
The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.60% closed around 340 points, or 1%, lower at 35,029, on a preliminary basis, weighed by losses in Boeing Co . /zigman2/quotes/208579720/composite BA +2.23% , Caterpillar Inc . /zigman2/quotes/203434128/composite CAT +1.78% and Goldman Sachs Group Inc . /zigman2/quotes/209237603/composite GS +0.30%
The S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.95% closed 44 points, or 1%, lower at about 4,532. Consumer discretionary sector /zigman2/quotes/210600228/delayed XX:SP500.25 +2.78% led losses, down 1.8%, followed by a 1.7% decline in financials /zigman2/quotes/210599854/delayed XX:SP500.40 +0.80% .