DOW DOWN: The Dow Jones industrial average fell 225 points, its worst day in nearly two months. The Dow is now down 2 percent for the week.
LOOKING GRIM: Wal-Mart and Cisco Systems, both of which are in the Dow, disappointed investors with poor sales forecasts. Wal-Mart fell 2.6 percent, Cisco fell 7.2 percent.
RATE SPIKE: Investors also dumped bonds over fear that the Federal Reserve may be closer to cutting back its bond-buying program. The yield on the 10-year Treasury note rose as high as 2.81 percent, the highest since July 2011. The yield is used to set rates on many kinds of loans including mortgages.