The major Wall Street indexes declined on Thursday as bond yields increased and data revealed that consumer prices increased more than expected in September, casting doubt on the Federal Reserve's forecast for interest rates.

The S&P 500 dropped 42.36 points, or 0.97%, to 4,334.59, the Nasdaq Composite dipped 125.81 points, or 0.92%, to 13,533.86 while the Dow Jones Industrial Average fell by 302.04 points, or 0.89%, to 33,502.83.

For the week ending October 7, according to another set of data, jobless claims increased by 209,000, less than the predicted 210,000 increase.

After a U.S. Treasury auction, stocks declined in afternoon trade as benchmark 10-year rates increased and reached a session high. After declining for two straight days, the benchmark yield increased to above 4.7%.

The likelihood that the Fed will raise interest rates again this year and maintain them higher for longer next year is expected to increase, according to traders.