Dow loses 100 points as 10-year US yield reaches its highest level in 7 years

Michael Nagle | Bloomberg | Getty Images

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, United States on Monday, April 23, 2018.

"The current upward trend appears to be an adjustment to several months of data suggesting that the US economy has accelerated over 2018. In particular, the labor market seems to be significantly tightened, and the recent FOMC comment suggests that this has gone unnoticed, "said Michael Shaoul, Chairman and Chief Executive Officer of Marketfield Asset Management.

Shaoul noted that rates could go even higher from here. "While nominal growth in the US has finally increased and the FOMC has pushed the key rate up to 3.0% by next year, a return above 3.50 % over 10 years does not seem odd to us, "he said.

Thursday's move came after the Dow hit a record. The Dow, as well as the S & P 500 and Nasdaq, initially rose, with investors applauding for the first time the strong economic data released on Wednesday.

On Thursday, the number of initial UI claims fell to 207,000, the lowest level in nearly 49 years. The report comes as investors prepare for September 's employment report, due to be released Friday morning.

Both Amazon and Apple's shares fell after a report that a Chinese hardware maker could allow microchips used to spy on certain equipment used by Amazon Web Services and the iPhone maker. Both companies dispute the report.