The majority of stocks in the S&P 500 also sank, while the smaller stocks in the Russell 2000 index dropped even more, down 1.2%.
Shorter-term yields also eased back, giving up a portion of their own recent surge.
Stocks have been powering mostly higher over the last month as companies have widely reported much stronger profits for the summer than analysts expected.
But Target fell 4.7% even though it also reported better earnings than expected.
But the number of building permits also rose by more than expected, perhaps showing that homebuilders see those pressures eventually easing.