Technology companies led a broad slide in stocks on Wall Street Tuesday as investors reacted to a surge in U.S. government bond yields.

The benchmark index fell 2%, its worst drop since May, and the tech-heavy Nasdaq fell 2.8%, its worst drop since March.

The main action was again in the bond market, where a swift rise in Treasury yields is forcing investors to reassess whether prices have run too high for stocks, particularly the most popular ones.

The yield on the 10-year Treasury note jumped to 1.54%, its highest level since late June.

That's up from 1.32% a week ago.