Tech dragged stocks lower as Treasury yields climbed, with markets digesting prospects for growth and inflation from China’s rollback of Covid isolation measures.

The S&P 500 fell on thin volumes, with trading about 20% below the 30-day average.

The tech-heavy Nasdaq 100 underperformed, dropping more than 1%.

Tesla shares led losses as a report of a plan to temporarily halt production at its China factory rekindled fears about demand risks. Apple touched the lowest since June 2021 amid a slump in big tech.

Southwest Airlines led declines in airline stocks after canceling flights, hobbled by a massive winter storm that battered the U.S.

Meanwhile, the blue-chip Dow Jones Industrial Average outperformed, with gains in shares including Verizon Communications and Caterpillar.

The yield on 10-year Treasuries climbed 10 basis points to the highest since mid-November, as China moved to end the quarantine for inbound visitors.

Declines at the start of the last trading week of 2022 damped investors’ hopes for a year-end rally to help mitigate what has otherwise been a brutal run for risk assets.

The S&P 500 is down almost 20%, while Asian and global stocks still remain down by a similar amount in the worst annual drop since 2008.

The 10-year Treasury yield is above 3.80%, up from 1.5% at the start of the year as the Federal Reserve embarked on an aggressive battle against inflation.

Bitcoin held below $17,000 after starting 2022 at more than $47,000.

“We may get a pivot later on next year from the Federal Reserve where they actually start cutting rates, but that’s going to happen when the situation is going to become much more dire than it is now,” Matt Maley, chief market strategist for Miller Tabak + Co., said on Bloomberg TV.

“If we just have this slow grind lower, the Fed’s going to keep interest rates at high levels even if they stop raising rates in any kind of way.”

Elsewhere in markets, oil clung to a three-week high as storm-hit U.S. refineries restarted and China’s further easing of travel restrictions promised to bolster demand.

Iron ore surged to its highest since early August, while copper gained in New York. Gold edged higher, trading above $1,800 an ounce.