Stocks slide and bond yields rise after Bernanke says Fed could slow its bond purchases

NEW YORK — Stocks are closing sharply lower and bond yields are rising after Fed Chairman Ben Bernanke said the central bank could slow its massive bond purchases this year.

The Dow Jones industrial average dropped 206 points, or 1.4 percent, to 15,112. It was the Dow's seventh straight move of 100 points or more.

Fed Chairman Ben Bernanke is on a television screen as specialist James Naughton works at his post on the floor of the New York Stock Exchange Wednesday, June 19, 2013. The Federal Reserve offered a hint Wednesday that it's moving closer to slowing its bond-buying program, which is intended to keep long-term interest rates at record lows. (AP Photo/Richard Drew)

The Standard & Poor's 500 fell 22, or 1.4 percent, to 1,628. High-dividend stocks like telecommunications and utilities stocks fell the most.

The Nasdaq fell 39 points, or 1.1 percent, to 3,443.

The yield on the 10-year Treasury note jumped to 2.34 percent, the highest since March 2012. The yield started the day at 2.21 percent.

Five stocks fell for every one that rose on the New York Stock Exchange. Volume was average at 3.4 billion shares.

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