U.S. Stocks Slide as Treasury Yields Surge Amid Tax Cut Concerns

U.S. stocks declined on Wednesday as rising Treasury yields and the potential impact of President Trump's tax-cut bill on federal debt concerned investors. The S&P 500 and Nasdaq saw further losses, while a Congressional committee examined potential budget cuts amid fears of heightened government debt.

U.S. stocks took a tumble on Wednesday, driven by a rise in Treasury yields as investors considered the implications of President Donald Trump's tax-cut proposal on the federal debt.

The S&P 500 and Nasdaq extended recent losses, influenced by long-term Treasury yields climbing after the Treasury's $16 billion bond sale. Concerns over debt increase were compounded by Republican-led Congressional budget cut discussions, including potential impacts on Medicaid.

With analysts estimating the Republican tax bill could significantly swell national debt, markets reacted accordingly. Despite Alphabet's gains, most sectors, including healthcare and financials, experienced declines. Notably, UnitedHealth and Target faced notable drops after various concerning reports.

(With inputs from agencies.)