The Dow Jones index was down 300 at 25,884 and the S&P 500 was 30 points lower at 2,792.
Stocks moved higher in midday trading after several big USA companies reported strong quarterly results.
Stock futures climbed toward a rebound in Wednesday's premarket session, as the S&P 500 looked to cap its best January showing in two decades.
NASDAQ measures a number of indices reflecting the reaction of USA's high tech markets and business environments on the country's political and economic developments which have an impact on high tech markets. Half of the index's companies have reported, 78 percent of which beat Street expectations, according to Thomson Reuters data.
One bright spot was Amazon, which rose 6.3 percent after the online retailer reported a record profit of near $2 billion due to strong sales and tax law changes. Dow members Merck, Pfizer and Johnson & Johnson all lost two percent or more, and biotechs including Gilead Sciences also were sharply lower.
The Dow Jones average was down 402 points at 25,784 and the S&P 500 was 36 points at 2,786 as the value of the U.S. dollar rose by an average of 0.5% on foreign exchange markets.
The S&P 500 is down 49.06 points, or 1.7 percent.
Shares of Electronic Arts rose 7% after posting sharp growth in live services revenue in the holiday quarter, while Xerox gained 4.4% after shrinking its loss and sealing a deal in which Japan's Fujifilm Holdings will take a majority stake.
BID ON THIS: Shares in eBay vaulted 14.5 percent after the e-commerce company gave a strong forecast for the current quarter. The stock's week-long decline stopped just short of 7% below a 176.34 buy point, avoiding the automatic sell rule, but leaving shares well below their 10-week moving average.
OUTBID: PayPal slid 6.1 percent after eBay said it would move to a different payment processor.
Volume on USA exchanges was 5.39 billion shares, compared to the 7.33 billion average for the full session over the last 20 trading days. Brent crude, used to price global oils, declined 16 cents to $68.36 in London. The yield on the 10-year Treasury fell to 2.71 percent from 2.72 percent late Tuesday. Facebook (FB) led the group, up 1.1% in premarket trade, as the stock continues to linger in its buy range above a 184.35 buy point.
Worries about soaring bond yields weren't isolated to the US.
CURRENCIES: The dollar rose to 109.36 yen from 109.20 yen. The euro strengthened to $1.2478 from $1.2410. London's FTSE 100 fell 0.4 percent. Markets in Asia finished mixed. Hong Kong's Hang Seng index fell 0.8 percent.
The Nasdaq is down 119.91 points, or 1.6 per cent.