US equity indexes finished the day in the red after two Federal Reserve officials said they were considering a 50 basis-point interest rate hike to combat persistently high inflation.

The S&P 500 index fell 1.4%, while the Nasdaq 100 fell 1.9%. The yield on the benchmark 10-year Treasury bond surpassed 3.8% for the first time this year.

Cleveland Fed President Loretta Mester said she saw a compelling economic case for another 50 basis point hike, and St. Louis Fed President James Bullard said he would not rule out supporting a half-point increase rather than a quarter point at the Fed's March meeting.

Their warnings followed US Producer prices rose the most since June in January. In January, new home construction fell for the fifth month in a row as high mortgage rates kept a lid on housing demand. Weekly jobless claims fell to 194,000, below the 200,000 expected.