NEW YORK — The stock market has a new priority: interest rates.
Stocks fell moderately Wednesday after the government sold $19 billion in 10-year Treasury notes in a relatively weak auction.
There were plenty of bidders, but the government had to lure them in with a higher yield than the market anticipated.
The yield on the benchmark 10-year Treasury note rose for the fourth time in five days, jumping to 3.96 percent from 3.86 percent late Tuesday.
That helped send stocks broadly lower, with the Dow Jones industrial average losing 24 points.
Investors are concerned that the government’s debt load is growing so large that it will lead to higher inflation and soaring interest rates.
Higher interest rates could hamper the economy’s recovery by raising borrowing costs for consumers, while inflation could also discourage them from spending.
Stocks have fallen several times in the past two months on worries over interest rates.
Yields on long-term Treasury bonds jumped May 21, sending the stock market sharply lower, after Standard & Poor’s warned it might downgrade the British government’s AAA debt rating.
That touched off fears that the U.S. government’s debt rating might be downgraded at some point.
A weakening dollar has also contributed to concerns about interest rates, since it can lead to higher prices for imported goods, putting pressure on the Federal Reserve to hold inflation in check by raising short- term interest rates.
The Dow fell 24.04, or 0.3 percent, to 8,739.02 after sliding as much as 123 points after the release of the Treasury-auction results in the early afternoon.
The S&P 500 index fell 3.28, or 0.4 percent, to 939.15.
The Nasdaq composite index fell 7.05, or 0.4 percent, to 1,853.08.
Data from the Federal Reserve on regional economies did little to help stocks.
The central bank reported in what’s known as its Beige Book that five of 12 U.S. regions said the economy’s “downward trend is showing signs of moderating.”
The Dow has been waffling around 8,700 this month, just below where it started the year, after its three-month rebound from 12-year lows reached in early March.
