The shares were sold on Wednesday, under pressure from the sharp increase in US government returns, because traders increased in concern that the new American budget law would additionally burden the country’s large deficit.
Dow Jones Industrial Average lost 816.80 points, ie 1.91% to 41,860,44. S & P 500 dropped by 1.61% to 5,844.61. Nasdaq Composite fell by 1.41% to 18,872.64.
The yield of 30-year state bonds lasted about 5.09%, reaching the highest level since October 2023. The reference return of 10-year government bonds was traded at 4.59%.
Long-term bonds were sold out because traders were worried that the new budget law would worsen the American deficit, SEEbiz reports. The measure is expected to be adopted because lawmakers reach a compromise on state and local tax deductions on the eve of the president of the Mike Johnson’s representative home for the day of the memory. The yields have further increased after a bad afternoon auction for 20-year debt, which caused fears that investors may lose their appetite for financing American deficits.
“The question is now, from the fiscal perspective, how will the tax law appear and will all recent fiscal threshancy increases that the amount of inflation. Interview for CNBC.
“Now seems like there is a higher chance that the tax law will be adopted, and in the end, it could simply continue to increase the overall debt level,” he continued.
Yields on American government bonds rose sharply last month because concerns about the Tariff of President Donald Trump reduced confidence in the status of a secure shelter of American debt. Ten years of yields in April fell from below 3.9% to more than 4.5% in just a few days. The yields were reduced from these levels after Trump announced the delay of the income effect.
The shares of Target fell by 5.2% after the Grand Dealer reduced its annual outlooking, and the executives mentioned uncertainty about tariffs and a negative reaction to the company’s efforts, ownership capital and inclusion. UnitedHealth was the weakest member of Dow Jones, losing 5.8% after the rating lowering by HSBC. The main shares associated with technology, Apple and Amazon, also fell as interest rates grew.
