NEW YORK: The S&P 500 and the Nasdaq dropped on Wednesday as US bond yields spiked ahead of the Federal Reserve’s policy statement which could provide hints on whether the central bank would raise interest rates sooner than expected.

The benchmark 10-year yield ticked up to a new 13-month high of 1.676%, denting demand for some high-growth technology stocks and pressuring the Nasdaq by about 1%.

At 11:46 a.m. ET, the Dow Jones Industrial Average rose 90.98 points, or 0.28%, to 32,916.93, the S&P 500 lost 19.84 points, or 0.50%, to 3,942.87 and the Nasdaq Composite lost 176.93 points, or 1.31%, to 13,294.64.

Apple Inc, Netflix Inc and Microsoft Corp slipped between 1.4% and 2.2% in a continuation of a rotation out of high-flying companies into last year’s laggards including financials, industrials and materials.

The banks index and airlines, expected to benefit from a reopening economy, added more than 1%.