In the latest example of how good news for the economy can be bad for Wall Street, the Dow slumped nearly 600 points Thursday after strong economic reports raised the possibility of interest rates staying painfully high.

The weakness was widespread and overshadowed another blowout profit report from market heavyweight Nvidia.

The Dow Jones Industrial Average slid 626 points, or 1.6%, to 39,044, and the Nasdaq was 0.7% lower.

The S&P 500 was down 0.9% in afternoon trading and pulling further from its record set earlier this week.

Stocks were struggling under the weight of higher yields in the bond market.

Treasury yields cranked up the pressure following the stronger-than-expected reports on the US economy, which forced traders to rethink bets about when the Federal Reserve could offer relief to financial markets through lower interest rates.

One preliminary report suggested growth in US business activity is running at its fastest rate in more than two years.

S&P Global said in its report that growth improved for businesses not only in the services sector but also in beaten-down manufacturing.

A separate report, meanwhile, showed the US job market remains solid despite high interest rates. 

Fewer workers applied for unemployment benefits last week than economists expected, an indication that layoffs remain relatively low.

Treasury yields had been close to flat following the joblessness report but turned higher immediately after the report on business activity, which also suggested selling prices remain stubbornly high.

With upward pressure on inflation now coming from both the manufacturing and service sectors, it suggests “the final mile down to the Fed’s 2% target still seems elusive,” according to Chris Williamson, chief business economist at S&P Global Market Intelligence.