Shares of technology companies fell as rising Treasury yields and a disappointing earnings report from Marvell Technology weighed.
Marvell shares slid despite the chip maker's report of robust earnings and revenue growth.
Investors honed in on the details of a deal with Alphabet's Google, suggesting that the bar was becoming almost impossibly high, said one strategist.
"They're picking apart the perfect story," said Peter Mulmat, head of brokerage at IG North America's tastytrade trading platform. "They'll punish timing gaps because valuation is already stretched."
Shares of PayPal tumbled after Bloomberg reported that financial-technology firm Stripe and investment firm Advent were walking away from an offer to buy the payments firm.
