Wall Street Plunges Amid Rising Treasury Yields and Tax-Cut Concerns

U.S. stocks saw a significant downturn as Treasury yields soared, driven by concerns about increasing government debt if President Trump's tax-cut proposal passes. Major indexes and small-cap stocks registered notable declines. Analysts predict the tax bill could add trillions to federal debt, while other market movers included updates from UnitedHealth, Target, and Wolfspeed.

U.S. stocks took a sharp hit Wednesday, driven down by soaring Treasury yields as fears mounted over the potential inflation of government debt should President Donald Trump's tax-cut bill pass Congress. This market downturn marked the largest single-day losses Wall Street's major indexes have seen in a month.

The yield on 10-year Treasury notes climbed 11.5 basis points to 4.597% after tepid investor interest in a $16 billion bond sale. Meanwhile, House Republicans scheduled a rare hearing to navigate internal disagreements over proposed budget cuts, including significant changes to the Medicaid program, fueling further market apprehension.

Market volatility was compounded by UnitedHealth Group's dip following revelations of secret nursing home bonuses and Target's forecast reduction amid weaker consumer spending. Morgan Stanley took an optimistic stance by upgrading U.S. equities to ‘overweight’ despite economic uncertainties.

(With inputs from agencies.)