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Stocks fell heavily in late afternoon trading on Wall Street on Monday, and bond yields continued to rise as investors predicted the Federal Reserve will raise interest rates.

The S&P 500 fell 1.6% as of 12:02 p.m. Eastern. The Dow Jones Industrial Average fell 490 points, or 1.4%, to 35,742 and the Nasdaq fell 2.1%.

Tech stocks again dragged the broader market down. The industry was the heaviest in the market throughout January and is having its worst week since October 2020. Big tech stocks have a huge impact on the S&P 500 due to their massive size. Entering the year, the tech sector represented 29.2% of the S&P 500. Microsoft fell 2.3% and Apple fell 2.1%.

Wall Street is watching the Federal Reserve closely for clues about when it might raise interest rates. The central bank has already said it will accelerate the reduction of bond purchases, which helps keep interest rates low. The market is currently suggesting that the Fed’s rate of increase of at least a quarter point in March is likely to be around 78%. A month ago, it was about 36%.

Higher interest rates make stocks of expensive tech companies and other expensive growth companies less attractive to investors, so the industry slides as bond yields rise.

The 10-year Treasury yield rose to 1.79% from 1.76% on Friday.

Every sector in the S&P 500 benchmark fell, though sectors considered less risky, including utilities and household goods manufacturers, fared better than the rest of the market.

Elsewhere in the market, deal news and financial updates moved several major stocks.

Shares fell 14.1% and jumped 45% after Take-Two Interactive, producer of “Grand Theft Auto”, announced that it agreed to buy Zynga, which produced “Words With Friends” and “Farmville.”