Nasdaq slumps more than 2% on fears of aggressive Fed

Wall Street’s main indexes tumbled on Monday in a dour start to the week as investors worried about hawkish signals from U.S. Federal Reserve policymakers against the backdrop of slowing economic growth.

Ten of the 11 major S&P 500 sectors declined in mid-day trading, with information technology, consumer discretionary and communication services stocks down 2% each.

High-growth and technology companies such as Apple Inc and Tesla Inc fell 1.7% and 2.8%, respectively, as the benchmark 10-year U.S. Treasury yield rose past 3% for the first time since July 21. [US/]

A four-week summer rally for the Nasdaq and the S&P 500 snapped last week after growth stocks tumbled on Friday.

Banks fell 1.9% on Monday, with lenders JPMorgan Chase & Co and Bank of America down more than 1% each.

Banking giants collectively face more than $1 billion in regulatory fines for employees’ use of unapproved messaging tools, including email and apps such as WhatsApp.

The CBOE Volatility index, Wall Street’s fear gauge, rose to 23.26, its highest level in over two weeks