Inflation, rate fears slam stocks

All this bad news has really slammed the stock market today. From CNN.Com:

NEW YORK (CNNMoney.com) -- Stocks slumped Thursday, with the Dow industrials losing more than 100 points one session after hitting a record high after a weak housing report and a spike in Treasury bond yields revived worries about interest rates and the economy.

The Dow Jones Industrial average (down 119.21 to 12,502.56, Charts) lost 119 points, its biggest one-day decline in almost two months. The blue-chip barometer had ended the previous session at a record close.

The broader S&P 500 (down 16.23 to 1,423.90, Charts) index lost 1.1 percent, after ending the previous session at the highest point since September 2000.

The Nasdaq (down 32.04 to 2,434.24, Charts) composite lost 1.3 percent, erasing nearly all of its gains from the previous session.

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Stock declines were broad based, with 28 out of 30 Dow components sliding, led by rate-sensitive issues such as financial leader American Express (down $1.16 to $57.77, Charts) and oil behemoth Exxon Mobil (down $1.38 to $73.52, Charts).

A variety of energy, gold, silver and other commodity shares tanked, after several up sessions.

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A surge in bond yields Thursday added to such jitters.

Treasury prices slipped after a weak response to the day's 5-year note auction. The declines boosted the yield on the benchmark 10-year note to 4.87 percent from 4.81 percent late Wednesday. Treasury prices and yields move in opposite directions.

Adding to troubles Thursday: a report that showed existing home sales saw the biggest drop last year in 17 years. Home sales in December also saw a bigger-than-expected decline. However, the report also showed that home prices may have bottomed out in December.