Stocks extended losses on Wednesday as results of a Treasury auction raised the specter of higher borrowing costs.

The rate worries presented another headwind for the market, after surging oil prices earlier triggered fears of a slump in consumer and business spending.

The Dow Jones industrial average <.DJI> dropped 61.82 points, or 0.71 percent, to 8,701.24. The Standard & Poor's 500 Index <.SPX> dropped 8.28 points, or 0.88 percent, to 934.15. The Nasdaq Composite Index <.IXIC> dropped 21.46 points, or 1.15 percent, to 1,838.67.

(Reporting by Ellis Mnyandu; Editing by Leslie Adler)