Stocks are getting pummeled

Stocks are down sharply in trading on Thursday.

Near 10:38 a.m. ET, the Dow was down 161 points, the S&P 500 was down 17 points, and the Nasdaq was down 49 points. The Nasdaq was down 1%, and the other two indexes were quite close.

Meanwhile the Japanese yen is still going strong against the dollar, dropping to as low as 107.93.

US treasury yields were also dropping as investor demand for them rose. The benchmark 10-year yield fell 4 basis points to as low as 1.708%.

And, the 2-year yield fell three basis points to as low as 0.704%, the weakest level in nearly two months.

The yen and US Treasurys see strong demand when investors want to park their money in a place that's considered safe.

Separately, the yen's appreciation is not great for the Bank of Japan, which is trying to stimulate its economy. A stronger currency does not help.

"We're watching the foreign exchange market with a sense of tension, and we'll take measures as appropriate," Japan's chief cabinet secretary Yoshihide Suga said at a press conference according to the FT.

In economic data, initial jobless claims fell to 267,000 last week from 276,000, more than expected.

Later on Thursday, Federal Reserve chair Janet Yellen will speak in New York with all her living predecessors.