Dow Falls Over 800 Points on Rising Treasury Yields, Deficit Concerns

U.S. stocks experienced a sharp decline on Wednesday, with the Dow Jones Industrial Average falling over 800 points amid a surge in Treasury yields, which reached their highest levels since February. Investor concerns centered on the potential impact of President Donald Trump's proposed tax-cut bill, which analysts estimate could add trillions to the federal deficit, exacerbating long-term debt risks. The bond sell-off reflected waning demand for U.S. debt, including weak investor interest in a $16 billion 20-year Treasury bond sale, contributing to rising yields and increased borrowing costs. Market fears were compounded by Moody's recent downgrade of the U.S. credit rating and ongoing partisan debates over budget cuts, including Medicaid reductions. Additionally, key stocks such as Target declined due to weaker sales forecasts and tariff-related concerns, while smaller stocks also faced significant losses. Investors remain attentive to Capitol Hill developments and upcoming corporate earnings, with heightened volatility expected to persist given the uncertain fiscal and economic outlook.