Shares of banks and other financial institutions fell as long-dated Treasury yields saw their biggest drop in three months.
Negotiations among Democrats seeking to pass a budget reconciliation bill appeared to founder.
Deutsche Bank shares fell sharply after the German bank reported an unexpected increase in costs and continued struggles with its investment-banking arm.
Investors are also nervous ahead of a Federal Reserve meeting next week, which could reveal heightened concern about inflation.
"Over the past year, the Fed has touted that inflation would be short-lived as the country emerges from Covid-19," said strategists at money manager Alpha Capital Management. "However, the data clearly show that inflation rates have been higher and more durable than what the central bank anticipated."
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
10-27-21 1713ET
