US shares fall on rate hiking concerns

US equities fell on Thursday as traders continued to debate over the possibility for higher rate policy by the Fed.

The Dow Jones Industrial Average fell 150 points, or 0.5%. The S&P 500 and Nasdaq Composite declined 1.1% and 2.2%, respectively. All of the major averages are on track to finish the week lower. The Dow is set to post a nearly 3% decline, while the S&P and Nasdaq are on pace to end down about 3.5% and 4.5%, respectively.

The moves came as the 2-year US Treasury yield rose to 3.516%, the highest level since November 2007, at one point Thursday. That weighed on rate sensitive growth stocks, making their future profits less attractive.

Nvidia shares also contributed to the losses, falling more than 8% after the chipmaker said the US government is restricting some sales in China.

Weekly US jobless claims fell to 232,000 for the week ending Aug. 27. That was weaker than economists surveyed by Dow Jones expected. It was also a decline from the previous period and the lowest level since June 25.

The major averages are coming off four straight days of losses. On Wednesday, the final day of August, the Dow slid nearly 0.9%. The S&P 500 lost about 0.8%, and the Nasdaq Composite fell roughly 0.6%.

The Dow closed the month down about 4.1%, while the S&P and Nasdaq recorded losses of 4.2% and 4.6%, respectively.

Investors are debating whether stocks will again challenge the June lows in September, historically the worst month for markets, after digesting the latest hawkish comments by Fed officials who show no signs of easing up on interest rate hikes.