The Dow Jones Industrial Average fell 292 points, or 0.7%, for the third night in a row due to optimistic Treasury yields and persistently high interest rates. The S&P 500 and Nasdaq Composite also retreated, retreating 0.6% and 1% respectively, all now extending their losses into their third day.

On Wednesday, the yield on the 10-year Treasury note reached 4.25%, the highest level since July. This increase is a combination of strong economic metrics and rising deficit concerns, which appear to be masking the Fed’s recent half-point rate cut. The market is in turmoil, especially on the assumption that the Fed could be less aggressive with future rate cuts than in the past, predicting more cuts before the end of the year.

Then Brent Schutte, Chief Investment Officer at Northwestern Mutual Wealth Management, added his voice and said, “It’s all about the pressure of higher interest rates.” The market is revaluing the likelihood that the Fed will aggressively cut rates in the near term. Some parts of the economy have not yet realized that they are in a new regime of higher interest rates, but the longer it stays there, the more parts of the economy will have to adapt. The economy is not in order.

This came as more core stocks, such as Coca-Cola (KO, Financial) and Tesla (TSLA, Financial), fell about 2% and 1%, respectively, while Coca-Cola revealed it beat third-quarter earnings estimates. Tesla’s earnings announcement follows the bell, which puts everyone on edge in a volatile stock market. The current market environment indicates a number of risks and concerns, including a possible recession and correction in the overvalued, large-cap dominated segments.

This article first appeared on GuruFocus.