Cisco Systems lost 3.68 percent, to $15.69.

The benchmark 10-year Treasury note fell 7/32, to 101 7/32, and its yield rose to 2.98 percent, from 2.96 percent late Tuesday.

Stanley A. Nabi, chief strategist for Silvercrest Asset Management Group, said investors were also focused on a number of companies with earnings this week that had some disappointing aspects, like 3M. The company said on Tuesday that it had record second-quarter sales but full-year growth would be affected by the Japan earthquake.

“I think this has raised a red flag of caution,” he said.

“On the Nasdaq, the small caps are getting hurt more than the general market. On a relative basis, they have become considered overvalued,” Mr. Nabi said.

The Federal Reserve’s survey of economic conditions in 12 districts throughout the country, known as the beige book, said on Wednesday that some companies were already feeling the effect of the uncertainty as the debt talks dragged on and were delaying business decisions.

Advertising and consulting firms in the Boston district, for example, “say their services may be some of the first cut if companies become pessimistic and retrench, so they fear that failure to resolve the debt ceiling issue could have huge negative ramifications for their firms and for the general economy,” the report said.