Dow skids lower early Thursday and S&P 500, Nasdaq head for worst day in nearly 2 months as Treasury rates slump

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U.S. stock indexes early Thursday headed for their worst day in weeks as yields on government debt extended a decline, with investors shying away from bets on a blistering economic recovery and rising inflation.The Dow Jones Industrial Average DJIA, -1.28% was down 373 points, or 1.1%, at around 34,313, the S&P 500 index SPX, -1.27% lost 55 points, or 1.3%, at 4,303 and the Nasdaq Composite Index COMP, -1.23% declined 1.6% to 14,424, on pace for its worst single-day slide since May 12 at their intraday lows. The drop for stocks came as the 10-year Treasury note TMUBMUSD10Y, 1.285% was at 1.31%, hanging near its lowest levels since February and suggesting that fixed-income investors are spooked about the economic path forward or the markets, or both.

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