Stocks of healthcare companies fell on worries that a shift by the Federal Reserve toward higher rates could put pressure on companies' funding needs. Investors also seemed to be shifting back into the technology sector, reversing some flows from earlier in the week into more defensive sectors.

Stocks of healthcare companies fell as markets soured on signs that borrowing costs in the U.S. would remain elevated until inflation falls toward the Fed's 2% target.

Stocks of healthcare companies fell on worries that a shift by the Federal Reserve toward higher rates could put pressure on companies' funding needs. Investors also seemed to be…