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Financial markets are once again focused on Washington, D.C., but taxes, not tariffs, are driving recent price action.
The yield on both 10 and 30-year government bonds rose on Monday after another credit ratings agency downgraded the US on Friday.
US stocks pulled back on Wednesday as investors weighed a flare-up in US-China tensions over chips and assessed Target (TGT)-highlighted retail earnings for insight into the economic impact of President Trump's tariffs.
The sell-off in bonds accelerated as investors continued to fret over the US deficit, with the 10-year yield rising past 4.5% and the 30-year topping 5%.
The S&P 500 slipped in volatile trading and Treasury yields rose on Wednesday as President Trump’s proposed tax-cut law faced a rare overnight
The Dow fell, while the S&P 500 and Nasdaq rose Tuesday as the stock market reacted to the latest CPI inflation report. AI stocks rallied.
The Dow closed lower by 817 points, or 1.91%. The broader S&P 500 slid 1.61% and the tech-heavy Nasdaq Composite fell 1.41%. The three major indexes each posted their worst day in one month. Stocks moved sharply lower and bonds sold off after a 1 p.