Treasurys Catch Fire, Dow Swoons
Stocks fell Wednesday as traders fretted over another move higher in Treasury yields and monitored the progress on a new U.S. budget bill that could put pressure on the country’s deficit.
The Dow Jones Industrials tumbled 314.01 points to 42,363.23.
The S&P 500 fell 6.29 points to 5,934.17.
The NASDAQ Composite regained 91.52 points to 19,234.24.
UnitedHealth was the worst-performing Dow member, losing more than 5% after a downgrade from HSBC. Major tech-related stocks Apple and Amazon dropped more than 1% as rates increased.
The latest moves come as traders look to Washington as Republican leaders work to finalize a budget bill that would lower taxes. However, the measure has faced pressure from GOP members looking for higher deductions on state and local taxes. Investors also worry the measure could worsen the U.S. deficit.
Prices for the 10-year Treasury subsided Wednesday, lifting yields to 4.54% from Tuesday’s 4.48%. Treasury prices and yields move in opposite directions.
Oil prices dipped 25 cents to $61.78 U.S. a barrel.
Prices for gold hiked $29.20 to $3,313.80.
