U.S. stocks slid as a jump in long- term borrowing costs spurred concern government efforts to reduce interest rates will fail, while Monsanto Co.’s disappointing forecast triggered a drop in commodity producers.

Benchmark indexes erased gains as the 10-year Treasury note declined for a fourth day, sending its yield to a record spread above two-year notes. Wells Fargo & Co. and U.S. Bancorp fell at least 5.6 percent as the Federal Deposit Insurance Corp. said the number of “problem” banks swelled to a 15-year high. Monsanto slid 6.3 percent after the world’s largest seed maker said profit will be at the low end of a previous forecast.

The S&P 500 dropped the most in two weeks, losing 1.9 percent to 893.06 at 4:05 p.m. in New York. The Dow Jones Industrial Average sank 173.47 points, or 2.1 percent, to 8,300.02. General Motors Corp. had the biggest drop in both gauges after failing to persuade enough bondholders to exchange debt for equity, pushing the company closer to bankruptcy. Four stocks fell for each rising on the New York Stock Exchange.

(Bloomberg.com)