Shares of banks and other financial institutions fell as House Speaker Kevin McCarthy's job appeared to be in jeopardy, raising the specter of a government shutdown in less than 45 days.
McCarthy was ousted in a House of Representatives vote following the market close.
"If you are wondering why the bond markets are out of sorts the past few weeks, look no further than the dysfunction in Congress," said Jamie Cox, managing partner for financial advisory Harris Financial Group.
"Investors are sick and tired of being jerked around with out of control spending, the inability to govern, and the constant dragging of markets to the edge of economic calamity with shutdowns and debt-ceiling nonsense."
The yield on the 30-year Treasury bond rose to the highest level since 2007 after surprisingly resillient jobs data spurred bets that the Federal Reserve will have to maintain rates at elevated levels for the foreseeable future to keep inflation in check.
China Evergrande Group's shares rose sharply as trading in the beleaguered property developer resumed after being halted last week.
Shares of Charles Schwab, LPL Financial, Raymond James Financial, and other wealth management companies slid amid fears that rising deposit rates at banks, linked to the surge in Treasury yields, would cause a flight from "cash sweep" brokerage accounts.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
10-03-23 1743ET
