Now playing
01:42
What kills a bull market?
A bidder holds up his bidding sign during an auction at Sotheby's in June 2004 in New York City. (Photo by Stephen Chernin/Getty Images)
Stephen Chernin/Getty Images
A bidder holds up his bidding sign during an auction at Sotheby's in June 2004 in New York City. (Photo by Stephen Chernin/Getty Images)
Now playing
04:42
Digital Artist Pak sells NFT art for $17 million at Sotheby's
People wearing face masks walk past the Bed Bath & Beyond store. Bed Bath & Beyond has announced plans to permanently close about 200 stores over the next two years. This announcement appears to be the first iteration of that plan, report says.
John Nacion/SOPA Images/Shutterstock
People wearing face masks walk past the Bed Bath & Beyond store. Bed Bath & Beyond has announced plans to permanently close about 200 stores over the next two years. This announcement appears to be the first iteration of that plan, report says.
Now playing
01:57
Don't worry, Bed Bath & Beyond coupons aren't going away
Accused $50 billion Ponzi scheme swindler Bernard Madoff exits federal court March 10, 2009 in New York City. Madoff was attending a hearing on his legal representation and is due back in court Thursday.  (Photo by Mario Tama/Getty Images)
Mario Tama/Getty Images
Accused $50 billion Ponzi scheme swindler Bernard Madoff exits federal court March 10, 2009 in New York City. Madoff was attending a hearing on his legal representation and is due back in court Thursday. (Photo by Mario Tama/Getty Images)
Now playing
03:11
Bernie Madoff, infamous Ponzi schemer, dead at 82
Now playing
05:18
Coinbase CFO: We're an on-ramp to the crypto economy
GrabBike riders wait for passengers outside a commuter train station in Jakarta on June 13, 2018. - Toyota said June 13 it was investing 1 billion USD in Asia ride-share company Grab, as the Japanese automaker looks to expand beyond its core business into the "mobility" sector. (Photo by GOH CHAI HIN / AFP)        (Photo credit should read GOH CHAI HIN/AFP via Getty Images)
Goh Chai Hin/AFP/Getty Images
GrabBike riders wait for passengers outside a commuter train station in Jakarta on June 13, 2018. - Toyota said June 13 it was investing 1 billion USD in Asia ride-share company Grab, as the Japanese automaker looks to expand beyond its core business into the "mobility" sector. (Photo by GOH CHAI HIN / AFP) (Photo credit should read GOH CHAI HIN/AFP via Getty Images)
Now playing
03:12
Grab is going public in $40 billion SPAC deal
tengler stock market correction prediction orig_00014122.png
tengler stock market correction prediction orig_00014122.png
Now playing
02:26
Here's how much this strategist expects the market to correct
barrys gym ceo pandemic fitness industry orig_00003130.png
barrys gym ceo pandemic fitness industry orig_00003130.png
Now playing
01:09
Barry's CEO: It's 'crazy' gyms got no government support
The logo of Swiss banking giant Credit Suisse is seen on October 17, 2017 in Zurich.
FABRICE COFFRINI/AFP/Getty Images
The logo of Swiss banking giant Credit Suisse is seen on October 17, 2017 in Zurich.
Now playing
02:42
Credit Suisse takes $4.7 billion hit from hedge fund collapse
The replacement of Line 3 created jobs.
Bill Weir/CNN
The replacement of Line 3 created jobs.
Now playing
01:57
Why an infrastructure bill could help jobs bounce back faster
A Deliveroo rider cycles through central London on March 26, 2021. - The meal delivery platform Deliveroo is bracing for strikes and other social actions by disgruntled riders as it gears up for a major London stock listing.  The group has come under fire for employment conditions that have already scared off a couple of large institutional investors (Photo by DANIEL LEAL-OLIVAS / AFP) (Photo by DANIEL LEAL-OLIVAS/AFP via Getty Images)
Daniel Leal-Olivas/AFP/Getty Images
A Deliveroo rider cycles through central London on March 26, 2021. - The meal delivery platform Deliveroo is bracing for strikes and other social actions by disgruntled riders as it gears up for a major London stock listing. The group has come under fire for employment conditions that have already scared off a couple of large institutional investors (Photo by DANIEL LEAL-OLIVAS / AFP) (Photo by DANIEL LEAL-OLIVAS/AFP via Getty Images)
Now playing
04:05
Deliveroo shares plunge on market debut
Now playing
03:31
Intel CEO: We're ready to go bigger and faster
Now playing
03:19
Slack CEO: We made an 'unforced error' in DM roll out
Alex Wong/Greg Nash/Pool/AFP/Getty Images
Now playing
02:57
Watch Elizabeth Warren grill Janet Yellen about risks to US financial system
tech stock investing lo toney orig_00001730.png
tech stock investing lo toney orig_00001730.png
Now playing
02:08
Tech stocks have taken a hit. Here's why that could be a buying opportunity
CNN
Now playing
03:07
Scaramucci blasts Republicans for not supporting Biden's rescue plan
(CNN Business) —  

The Nasdaq is taking a hit as investors pull away from risky tech stocks.

During trading hours Monday, the tech-heavy index fell by as much as 1.8%. The Dow and S&P 500 fell as low as 0.8% percent each.

The Nasdaq closed down 0.7%, while the Dow closed slightly up. The S&P closed about flat.

Each of the FAANG stocks — Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google -(GOOG) — declined.

Rising bond yields and interest rates are prompting investors to back away from tech, said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

“Whenever you see rates rise in a rapid fashion, you typically see tech take a hit,” he said. “As people start to get more concerned about the stock market in general, they pull back from more risky areas of the market.”

Zaccarelli explained that investors see tech stocks as a long-run asset. When borrowing costs go up, investors see their payoff move further away, so they turn to more reliable bets like utilities and consumer staples.

Bond yields spiked following the jobs report on Friday. The benchmark 10-Year Treasury hit 3.24% – its highest level in more than seven years.

The 10-year yield influences borrowing costs, including mortgage, car loan and credit card rates.

Bond yields are rising because of America’s strength. Intent on keeping inflation in check, the Federal Reserve is gradually raising its target interest rate, making borrowing more expensive.

That also increases the cost of paying back existing debt, which could slow spending — and the economy along with it. Last month, the Fed raised rates for the third time this year.

“You’re now starting to see people price that in even to a greater extent today,” Zaccarelli said of changes in the bond market.

Sam Stovall of CFRA Research said that “investors are trying to lock in whatever profits they have.”

The Nasdaq is also vulnerable to the Fed and yields because it includes financial stocks, which could be impacted by higher interest rates, he said. That’s because higher interest rates tend to slow growth, he said. When that happens, people and companies are less likely to borrow from banks.

That doesn’t mean the Nasdaq will continue to fall.

Brad McMillan, chief investment officer at Commonwealth Financial Network, said that the dip represents a normalization.

Recently, there’s been “a tremendous amount of optimism about future growth baked into [the Nasdaq’s] prices,” he said. Now, we’re “getting back to something a little closer to normal.”

“I expect we’re going to see market confidence recover,” he said.

CNN’s Lydia DePillis and Paul R. La Monica contributed to this report.