The Dow Jones Industrials gave up morning gains and slouched 90.22 points to 30,333.59.
The S&P 500 let go of 29.38 points to 3,665.78.
The NASDAQ slipped 65.66 points to 10,614.84.
The benchmark 10-year Treasury yield reached a high of 4.239% on Thursday, trading at levels not seen since 2008.
Several strong earnings reports limited losses for the market, with AT&T taking on 7.7%, and IBM rising 4.7%, after beating estimates on the top and bottom lines for their most recent quarter.
On the downside, Tesla shares dropped more than 6% after the electric vehicle maker said Wednesday evening it expects to miss its 2022 deliveries target. The company also posted quarterly revenue that missed analysts’ expectations.
On the economic front, the weekly jobless claims showed a surprise decline in initial filings, but the Philadelphia Fed index showed a contracting manufacturing sector.
Treasury prices tumbled, raising yields to 4.24% from Wednesday’s 4.13%. Treasury prices and yields move in opposite directions.
Oil prices grabbed 16 cents to $85.71 U.S. a barrel.
Gold prices fell $2.50 to $1,631.70 U.S. an ounce.