The major averages succumb to selling pressure as traders focused on a recent run higher in the 10-year Treasury yield, now trading above 5%. The Dow Jones Industrial Average fell 286 points or 0.86%. The S&P 500 fell 53 points or 1.26% while the Nasdaq Composite dropped 202 points or 1.53%.

The yield on the benchmark 10-year Treasury crossed 5% for the first time in 16 years on Thursday. The 10-year yield hit 5.001% around 5 p.m. ET, the first time it has traded above that level since July 20, 2007 when it yielded as high as 5.029%.

The 30-year U.S. Treasury yield also hit a high last seen in July 2007. Meanwhile, the 30-year fixed mortgage rate reached 8% this week, a level not seen since 2000.

The higher rates are hitting the banks. Regions Financial fell 12% on disappointing earnings. The banking ETF fell a percent while the regional bank ETF dropped 4%.  

On the earnings front, shares of SolarEdge fell over 25% after the company trimmed its third-quarter revenue guidance. SolarEdge was hit with at least four downgrades.  Intuitive Surgical dropped 2% on lackluster earnings. Hewlett Packard is lower by 6% after lowering forward looking guidance.

On the plus side, Knight-Swift Transportation jumped 11% after beating estimates in the third quarter on both lines. AT&T is up another 2% today following better than expected earnings yesterday.

Federal Reserve Chair Jerome Powell said on Thursday that inflation remains too high and lower economic growth will likely be needed to bring it down. Powell also said he doesn't think rates are too high now.

All this news combined for a down week. The S&P 500 lost 2.4% on the week, while the Dow slipped 1.6%. The Nasdaq shed 3.2%, notching its second straight week of losses.