Shares of power producers rose, but not by as much as the broad market, as long-term Treasury yields closed at multiyear highs.

Utilities are doubly susceptible to rising bond yields because of their high debt loads and reputation as bond alternatives. One strategist said fears about rising Treasury yields may be overdone.

"This goes back to question why are the yields up so high," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. While inflation concerns are part of the reason for rising yields, the economic outlook and increase in tech companies' bond issuance are also factors among many others, Joyce said. "Some [reasons] are positive, some are negative," said Joyce.