Stocks take hit from higher rates | Dow drops more than 500 points | 10-year tops 1.6%

The 10-year traded as high as 1.614% during the session, which was the highest level since Feb. 14, 2020.

VIEW IN BROWSER | SUBSCRIBE THU, FEB 25, 2021 EVENING BRIEF AS OF THU, FEB 25, 2021 • 05:02 ET DJIA 31402.01 -1.75% -559.85 S&P 500 3829.34 -2.45% -96.09 NASDAQ 13119.43 -3.52% -478.54   Most Active DOW NAME LAST CHG %CHG AAPL 120.99 -4.36 -3.48% MSFT 228.99 -5.56 -2.37% INTC 60.40 -2.79 -4.42% S&P 500 NAME LAST CHG %CHG AAPL 120.99 -4.36 -3.48% GE 12.76 -0.36 -2.74% F 11.76 -0.51 -4.16% NASDAQ NAME LAST CHG %CHG AAPL 120.99 -4.36 -3.48% AMD 82.42 -4.52 -5.20% MSFT 228.99 -5.56 -2.37%   EDITOR'S NOTE The rebound in Treasury yields appeared to gain momentum and spill over into the equity market on Thursday, with the 10-year yield crossing several major milestones. The benchmark bond rate broke above 1.5% and 1.6% for the first time since February of 2020 during the session. It finished the day near 1.51%, a gain of roughly 12 basis points.   Thursday's move also put the 10-year yield above the dividend yield of S&P 500. Rising yields can put pressure on both stocks with high valuations, whose future cash flows look less attractive amid higher rates, and dividend payers, which would face more competition from bonds. The spike above 1.6% came after a weak auction for 7-year notes, and yields quickly pulled back from that high, which some traders called a "flash move."   These dramatic moves may reach an uneasy calm over the next couple of days as fixed income investors assess their new neighborhood, Credit Suisse analysts said in a note.   "With a whole host of tactical objectives also met across core rates markets ... we shift to a tactically neutral stance in the very short term and expect price action to become choppier from here," the note said. Jesse Pound | CNBC Markets Reporter @jesserpound TOP NEWS  Dow falls 560 points amid surging yields, Nasdaq sheds 3.5% in worst sell-off since October 10-year Treasury yield jumps to a one-year high of 1.6%, a rapid move unnerving investors Why stock investors are starting to really worry about rising bond yields The bond market is betting on a red hot economy and stocks don't like it Stocks just got some new competition from bonds as 10-year rate tops dividend yield Airbnb reports $3.89 billion loss in first quarterly report since IPO, but beats revenue expectations Virgin Galactic shares fall as quarterly results reveal next spaceflight test delayed to May Salesforce revenue up 20% from last year, forecast calls for similar growth rate Weekly jobless claims drop sharply but labor market remains challenged Trump tax returns are now in the hands of the Manhattan district attorney   TOP VIDEO Robinhood says Charlie Munger comments 'disappointing' and 'elitist'   CNBC PRO Bank of America is the best of the big-bank stocks right now, says top analyst Mike Mayo   SPECIAL REPORTS Two sectors have broken out to records this week, and analysts see opportunity If you received unemployment benefits this year, you could owe thousands to the IRS   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2021 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS