Shares in the financial sector regained some ground as a massive bonds selloff took a breather, pushing borrowing costs down from multidecade highs.

UBS came under more pressure to leave Switzerland before it is hit by new capital rules. Artisan Partners wrote in a letter to the UBS board that rising capital requirements meant the Alpine nation was no longer an attractive or desirable location for the bank. The letter Wednesday follows earlier comments from another UBS shareholder, Cevian Capital, that it wasn't viable to run a big international bank from Switzerland under the country's proposed new capital regime.

Federal Reserve Vice Chair Philip Jefferson said Thursday that officials may need more time before deciding whether to raise interest rates again, echoing signals from another Fed leader this week that cast doubt on bets the central bank would lift rates at its meeting later this month.