The selloff in Treasuries persisted, pushing the yield on the 10-year closer to 3.2% as economic data continued to show a strong economy.
Initial jobless claims fell last week, near a 49-year low, in harmony with other recent numbers that showed a tight labor market ahead of the nonfarm payrolls report Friday.
Higher yields will put pressure on utility and telecom stocks, as their dividends become less attractive.
Meanwhile, tech struggled as heavyweights Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) dipped on a Bloomberg report China had planted malicious chips in their systems. Both companies denied the report.
Snap (NYSE:SNAP) fell nearly 4% after Citi lowered its price target on the stock to $7, while maintaining a sell rating, noting increasing competition, StreetInsider reported.
Elsewhere, Barnes & Noble (NYSE:BKS) stock jumped 26% after the struggling bookstore chain announced it was open to a takeover.
And Constellation Brands (NYSE:STZ) gained 5% after its earnings came in higher than expected.
In commodities, gold futures rose 0.32% to $1,206.80 a troy ounce, while crude oil futures fell 0.68% to $75.89 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, was flat at 95.77./reuters.com