Shares of industrial and transportation companies fell amid skepticism about the Treasury Department's efforts to bring borrowing rates down.
Treasury Sec. Scott Bessent said the agency would increase its bond buybacks. Some strategists warned that even the increased size of the buybacks would not be large enough to sway a multitrillion dollar market.
"Despite a series of efforts to thwart bond vigilantes, we believe these measures will struggle to offset either declining Fed credibility or rising rate expectations," economists at brokerage BNP Paribas said in a note to clients.
Soaring government bond yields have caused concerns about interest expenses for corporations and consumers.
The Federal Reserve's latest minutes indicated mounting support for a rate hike.
