Shares of banks and other financial institutions rose after Federal Reserve Chairman Kevin Warsh's debut speech from Jackson Hole, Wyo.

Treasury yields advanced across the board, with marked strength in the policy-sensitive two-year yield. Higher yields typically bolster banks' net interest margin, although the trend can also weigh on demand for mortgages and other loans.

One veteran strategist said the rising trend on the 30-year Treasury bond could continue despite efforts from the Federal Reserve and Treasury Department to talk rates down.

"Whenever a central bank challenges value of something, it usually doesn't end well for the central bank," said Peter Mulmat, head of brokerage at IG North America's tastytrade platform.

"The idea of the Treasury stepping in to buy long bonds...that's not a game you're going to win."