Dow Jones, S&P 500, Nasdaq Fall Amid Rising Treasury Yields, US Debt Concerns

U.S. stock markets experienced significant declines on Wednesday, led by the Dow Jones Industrial Average falling nearly 2%, amid rising Treasury yields and broader economic concerns. The surge in bond yields followed a U.S. Treasury auction where the government had to offer higher yields to attract buyers, pushing the 10-year Treasury yield above 4.5% and the 30-year above 5%. These yield increases pressured stocks across major indices, including the S&P 500 and Nasdaq, erasing earlier gains and ending a recent winning streak. Market weakness was further amplified by mixed earnings reports from major retailers such as Target, which lowered its full-year profit forecast amid trade war uncertainties and consumer boycotts. Additionally, renewed restrictions on advanced AI chip technology exports to China contributed to declines in key tech stocks like Nvidia and Palantir, while other companies like Snowflake and Urban Outfitters saw gains after beating earnings estimates. Overall, investor sentiment was dampened by the combined effects of rising government debt concerns, interest rate pressures, and geopolitical trade tensions.