Wall St weakened, declining from record highs, as investors assessed the impact of the Federal Reserve's intentions to raise interest rates once more this year.
On Wednesday, at the end of a two-day meeting, the Federal Open Market Committee flagged that it still plans another rate hike in 2017, while it also announced it will start unwinding its balance sheet next month.
"The meeting was definitely more hawkish than what the market was anticipating," Mary Ann Hurley, vice president in fixed income trading at DA Davidson in Seattle, told Reuters. "We were definitely not pricing in another rate hike for this year."
Interest rate futures are now pricing in a 75 per cent chance of a December increase, up from about 56 percent at the start of the Fed meeting on Wednesday, according to CME's FedWatch tool.
"Clearly the Fed doesn't have answers on the 2017 low inflation weakness but they're still very sensitive to falling behind the curve so they want to stay in front of the inflation curve," Michael Dowdall, investment strategist at BMO Global Asset Management, told Reuters.