Traders work on the floor of the New York Stock Exchange (NYSE) on May 19, 2025 in New York City.
Spencer Platt | Getty Images News | Getty Images
Stocks fell Wednesday as traders fretted over another move higher in Treasury yields and monitored the progress on a new U.S. budget bill that could put pressure on the country’s deficit.
The Dow Jones Industrial Average lost 330 points, or 0.8%. The S&P 500 shed 0.5%, and the Nasdaq Composite pulled back 0.3%.
The 30-year Treasury bond yield moved back above 5% on Wednesday, while the benchmark 10-year Treasury note yield traded over 4.53%. Yields moved above those key levels earlier in the week after Moody’s downgraded U.S. bonds late Friday.
The latest moves come as traders look to Washington as Republican leaders work to finalize a budget bill that would lower taxes. However, the measure has faced pressure from GOP members looking for higher deductions on state and local taxes. Investors also worry the measure could worsen the U.S. deficit.
“The questions now is, from a fiscal perspective, what will the tax bill look like, and will it undo all of the recent fiscal frugality by simply raising the debt level at a slower rate of pace? So I think that’s why the 10-year yield is moving higher — because investors are worried that we’re really not doing anything to slow the pace of inflation and to reduce the debt,” Sam Stovall, CFRA Research chief investment strategist, told CNBC in an interview.
“Now it seems as if there is a greater that the tax bill will pass, and that could end up simply continuing to raise the overall debt level,” he continued.
UnitedHealth was the worst-performing Dow member, losing more than 5% after a downgrade from HSBC. Major tech-related stocks Apple and Amazon dropped more than 1% as rates increased.
Wednesday’s action comes after a tough session for the three major averages. The S&P 500 ended a six-day win streak, while the Nasdaq saw its first negative day in three.
The major averages have staged sharp recoveries since a sell-off last month that engulfed markets after Trump unveiled steep tariffs on imported goods. The S&P 500 and Nasdaq are up more than 14% and 19%, respectively, in the past month.
“Some [investors] are a little worried that we’ve gone too far, too fast, and are due for some digestion of recent gains,” Stovall added.
Natural gas futures hit highest level since May 14
Natural gas’ June-dated futures hit a high of 3.513% on Wednesday morning.
Natural Gas 3M chart
This marked their highest level since May 14, when natural gas traded as high as 3.635%.
Similarly, the Euro TTF Natural Gas and UK Natural Gas benchmarks hit their highest levels since early April.
— Gina Francolla, Lisa Kailai Han
Stock open lower, adding to Tuesday’s losses
Palo Alto Networks, Target among stocks moving before market open
Nikesh Arora, CEO of Palo Alto Networks, looks on during the closing bell at the Nasdaq Market in New York City, U.S., March 25, 2025.
Jeenah Moon | Reuters
Check out the companies making headlines before the bell:
- Palo Alto Networks — Shares of the cybersecurity company dipped 3.7% after Palo Alto Network’s gross margin for the fiscal third quarter came out below estimates. The company still beat on earnings and revenue expectations, however.
- UnitedHealth — Shares dropped more than 6% after HSBC downgraded the health insurance giant, saying valuations are still elevated despite a recent rout.
- Target — The retailer’s stock slipped 3.5% after Target missed first-quarter revenue estimates and cut its full-year sales outlook. Executives blamed tariff uncertainty, weaker discretionary spending and backlash to the company’s rollback of key diversity, equity and inclusion efforts for its performance.
For the full list, read here.
— Pia Singh
Home construction ETF pacing for 1st positive month in 4
Homes under construction in Englewood Cliffs, New Jersey on Nov. 19th, 2024.
Adam Jeffery | CNBC
ITB 3M chart
Target cuts outlook, shares slide
A Target store in midtown Manhattan is seen in New York City, U.S., March 27, 2025.
Jeenah Moon | Reuters
Target dipped nearly 2% in the premarket after the company cut its full-year sales outlook. The retailer cited consumer uncertainty around consumer spending due to tariffs and backlash to a rollback of DEI efforts. First-quarter revenue also missed expectations.
— Fred Imbert
Lowe’s ticks higher after earnings beat
Customers shop at a Lowe’s home improvement store on Feb. 26, 2025 in Chicago, Illinois.
Scott Olson | Getty Images
Lowe’s shares were up more than 2% after the home improvement retailer posted first-quarter earnings that beat expectations. The company earned $2.92 per share, topping an LSEG estimate of $2.88 per share. Revenue of $20.93 billion was just below a consensus forecast of $20.94 billion.
LOW rises
— Fred Imbert
Stocks snap win streaks
Tuesday’s negative session ended rallies for the three major averages.
The S&P 500 and Dow snapped six- and three-day win streaks, respectively. The Nasdaq Composite notched its first negative session in three.
Read the full recap of the day’s moves here.
— Alex Harring
See the stocks moving after hours
These are some of the stocks making the biggest moves in extended trading:
- Toll Brothers — The luxury homebuilder’s shares advanced 6% after the company’s earnings topped forecasts. Toll Brothers reported earnings of $3.50 per share in the second fiscal quarter, above the consensus estimate of $2.83 per share, according to LSEG. The company posted $2.71 billion in revenue versus a $2.48 billion forecast.
- Take-Two Interactive Software — Shares slid 3% after the video game maker announced a proposed offering of $1 billion in common stock.
- Keysight Technologies — Shares climbed 5%. The electronic test equipment manufacturer reported earnings for the fiscal second quarter that came in above Wall Street consensus forecasts. Keysight posted $1.70 per share, excluding items, on revenue of $1.31 billion, while analysts polled by LSEG had penciled in $1.65 per share and $1.28 billion in revenue.
Click here for the full list.
— Alex Harring
Stock futures are little changed
Stock futures were nearly flat shortly after 6 p.m. ET Tuesday night.
Dow and S&P 500 futures each slipped 0.1%, while Nasdaq 100 futures shed 0.2%.
— Alex Harring
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