U.S. stock indexes dropped sharply as Treasury yields surged. The S&P 500 fell 0.8%, the Nasdaq Composite declined 1.1% and the Dow Jones Industrial Average lost 352 points, or 0.7%. Higher Treasury yields can increase the return hurdle for equities, with growth stocks particularly exposed because their valuations depend more heavily on future earnings. The update appeared in the Markets P.M. newsletter, a recap of the day’s most important market moves delivered after the closing bell; readers who were not subscribed were invited to sign up.