Shares of industrial and transportation companies fell amid concerns about North American trade deals and the rate outlook.
The U.S. declined to extend its signature trade pact with Mexico and Canada, setting up a decadelong review process that casts uncertainty over businesses that move goods across the world's busiest export borders.
Among companies with operations and markets straddling both sides of the Canadian border, General Motors shares fell.
GM posted a decline in second-quarter sales, as a shrinking electric-vehicle market, discounts and inventory constraints weighed. Rival Ford Motor also lost ground.
When asked Wednesday whether a rate hike was warranted, new Federal Reserve Chair Kevin Warsh declined to answer. "I'm not going to make a judgment now," said Warsh, when pressed during a discussion over whether inflationary pressures demanded a response.
