{"id":382,"date":"2025-05-21T12:57:02","date_gmt":"2025-05-21T12:57:02","guid":{"rendered":"http:\/\/www.agencywebdesigners.com\/?p=382"},"modified":"2025-05-22T14:22:53","modified_gmt":"2025-05-22T14:22:53","slug":"wall-street-tumbles-under-the-weight-of-rising-treasury-yields-and-us-debt-worries","status":"publish","type":"post","link":"http:\/\/www.agencywebdesigners.com\/index.php\/2025\/05\/21\/wall-street-tumbles-under-the-weight-of-rising-treasury-yields-and-us-debt-worries\/","title":{"rendered":"Wall Street tumbles under the weight of rising Treasury yields and US debt worries"},"content":{"rendered":"<p><strong>By STAN CHOE, AP Business Writer<\/strong><\/p>\n<p>NEW YORK (AP) \u2014 Wall Street slumped on Wednesday under the weight of pressure from the bond market, where Treasury yields climbed on worries about the\u00a0<a href=\"https:\/\/apnews.com\/article\/congress-republicans-tax-cuts-bill-deficit-trump-2baff1acf9bdf6060fd584c93c97a88b\">U.S. government\u2019s spiraling debt<\/a> and other concerns.<\/p>\n<aside class=\"related left\">\n<h2 class=\"widget-title\" data-curated-ids=\"\" data-relation-type=\"automatic-primary-section\">Related Articles<\/h2>\n<ul>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/05\/22\/stock-market-house-budget-bill\/\" title=\"Wall Street flips to losses after spending bill passes the House raising anxiety over US debt\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tWall Street flips to losses after spending bill passes the House raising anxiety over US debt\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/05\/22\/united-airlines-pilots-air-traffic-control-outages-denver\/\" title=\"United training director says reacting to air traffic control issues in \u2018pilots\u2019 DNA\u2019\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tUnited training director says reacting to air traffic control issues in \u2018pilots\u2019 DNA\u2019\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/05\/22\/fabrica-rino-leasing-activity\/\" title=\"Co-working space Fabrica RiNo rebrands and announces rise in leasing activity\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title \"><br \/>\n\t\t\tCo-working space Fabrica RiNo rebrands and announces rise in leasing activity\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/05\/21\/att-lumen-fiber-purchase-quantum-centurylink\/\" title=\"AT&amp;T acquiring Quantum Fiber from CenturyLink\u2019s owner for $5.75 billion\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title \"><br \/>\n\t\t\tAT&amp;T acquiring Quantum Fiber from CenturyLink\u2019s owner for $5.75 billion\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<li>\n\t\t\t<a class=\"article-title\" href=\"https:\/\/www.denverpost.com\/2025\/05\/21\/denver-broadway-commercial-real-estate-sale-hornet\/\" title=\"Broadway restaurant real estate sells to local investor for $3M\"><\/p>\n<p>\t\t\t\t<span class=\"dfm-title metered\"><br \/>\n\t\t\tBroadway restaurant real estate sells to local investor for $3M\t\t<\/span><\/p>\n<p>\t\t\t<\/a><\/p>\n<\/li>\n<\/ul>\n<\/aside>\n<p>The S&amp;P 500 fell 1.6% for a\u00a0<a href=\"https:\/\/apnews.com\/article\/stocks-markets-china-tariffs-catl-02ba2e767cdf0306c28ec9210bec90ed\">second straight drop<\/a>\u00a0after breaking a six-day winning streak. The Dow Jones Industrial Average lost 816 points, or 1.9%, while the Nasdaq composite sank 1.4%.<\/p>\n<p>Stocks had been drifting only modestly lower early in the day, after\u00a0<a href=\"https:\/\/apnews.com\/article\/target-first-quarter-earnings-tariffs-ed5765bac92257a0bab3815ece31f5c1\">Target<\/a>\u00a0and other retailers gave mixed forecasts for upcoming profits amid uncertainty caused by\u00a0<a href=\"https:\/\/apnews.com\/article\/consumer-prices-inflation-trump-trade-6ea513a44876c2f4dc948a25c15b0eb0\">President Donald Trump\u2019s trade war<\/a>. The market then turned sharply lower after the U.S. government released the results for its latest auction of 20-year bonds.<\/p>\n<p>The government regularly sells such bonds, which is how it borrows money to pay its bills. In this auction, the U.S. government had to pay a yield as high as 5.047% to attract enough buyers to lend it a total of $16 billion over 20 years.<\/p>\n<p>That helped push up yields for all kinds of other Treasurys, including the more widely followed 10-year Treasury. Its yield climbed to 4.59% from 4.48% late Tuesday and from just 4.01% early last month. That\u2019s a notable move in the bond market.<\/p>\n<p>\u201cBonds finally appear to be getting equities\u2019 attention,\u201d according to Jonathan Krinsky, chief market technician at BTIG, pointing in particular to the 30-year Treasury yield, which jumped back above 5% and approached its highest level since 2023.<\/p>\n<p>Treasury yields have been on the rise in part because of\u00a0<a href=\"https:\/\/apnews.com\/article\/moodys-debt-government-us-rating-credit-e2c803cade9b1552b68c7e722eac3b78\">concerns<\/a>\u00a0that\u00a0<a href=\"https:\/\/apnews.com\/article\/congress-republicans-tax-cuts-bill-deficit-trump-2baff1acf9bdf6060fd584c93c97a88b\">tax cuts currently under consideration<\/a>\u00a0in Washington could pile trillions of more dollars onto the U.S. government\u2019s debt. Concerns are also still brewing about how much Trump\u2019s tariffs will push up on inflation in the United States.<\/p>\n<p>The U.S. government\u2019s bonds aren\u2019t alone, and yields have been on the rise recently for developed economies around the world. That\u2019s partly because their governments are continuing to borrow more cash to pay their bills, while central banks like the Federal Reserve have cut back on their own holdings of government bonds.<\/p>\n<p>When the U.S. government has to pay more interest to borrow money, that can cause interest rates to rise for U.S. households and businesses too, including for mortgages, auto loans and credit cards. That in turn can slow the economy. Higher yields can also make investors less inclined to pay high prices for stocks and other kinds of investments.<\/p>\n<p>Moody\u2019s Ratings became the last of the three major ratings agencies late last week to downgrade the U.S. government\u2019s credit rating on concerns that it may be heading toward an unsustainable amount of debt.<\/p>\n<p>\u201cWe do not think that the downgrade matters by itself,\u201d Bank of America strategists wrote in a BofA Global Research report, \u201cbut it has served as a wake up call for those investors who had been ignoring the ongoing fiscal discussion.\u201d<\/p>\n<p>On Wall Street, Target sank 5.2% after the\u00a0<a href=\"https:\/\/apnews.com\/article\/target-first-quarter-earnings-tariffs-ed5765bac92257a0bab3815ece31f5c1\">retailer reported weaker profit<\/a>\u00a0and revenue than analysts expected for the start of the year.<\/p>\n<p>The company said it felt some pain from boycotts by customers. It scaled back many diversity, equity and inclusion initiatives early this year following criticism by the White House and conservative activists, which drew its own backlash. Perhaps more worryingly for Wall Street, Target also cut its forecast for profit over the full year.<\/p>\n<p>Carter\u2019s, which sells apparel for babies and young children, sank 12.6% after cutting its dividend.<\/p>\n<p>CEO Doug Palladini said the company made the move in part because of investments it anticipates making in upcoming years, as well as the possibility that it \u201cmay incur significantly higher product costs as the result of the new proposed tariffs on products imported into the United States.\u201d<\/p>\n<p>All told, the S&amp;P 500 fell 95.85 points to 5,844.61. The Dow Jones Industrial Average fell 816.80 to 41,860.44, and the Nasdaq composite dropped 270.07 to 18,872.64.<\/p>\n<p>A growing number of companies have recently said tariffs and uncertainty about the economy\u00a0<a href=\"https:\/\/apnews.com\/article\/trump-tariffs-company-forecast-reaction-93474e22fcf883d9040cd8ac1adbfc67\">are making it difficult to guess what the upcoming year will bring<\/a>. Others, including Walmart, have said they\u2019ll\u00a0<a href=\"https:\/\/apnews.com\/article\/tariffs-retail-consumer-trump-economy-ecd398941ba41d9a94145c5d75da6b24\">have to raise prices<\/a>\u00a0to offset Trump\u2019s tariffs.<\/p>\n<p>U.S. stocks had recently recovered most of their steep losses from earlier in the year after Trump\u00a0<a href=\"https:\/\/apnews.com\/article\/china-us-switzerland-tariffs-negotiations-b3f5174d086e39b2522ab848ddad9372\">delayed or rolled back<\/a>\u00a0many of his stiff tariffs. Investors are hopeful that Trump will lower his tariffs more permanently after reaching trade deals with other countries.<\/p>\n<p>In stock markets abroad, indexes were mixed amid mostly modest movements across Europe and Asia<\/p>\n<p>London\u2019s FTSE 100 rose 0.1% after a report said\u00a0<a href=\"https:\/\/apnews.com\/article\/uk-economy-inflation-1af22dee1c88043be8cb43049f55a255\">inflation in the United Kingdom<\/a>\u00a0spiked to its highest level for more than a year in April. Tokyo\u2019s Nikkei 225 fell 0.6% after a report said\u00a0<a href=\"https:\/\/apnews.com\/article\/japan-trade-exports-tariffs-trump-39795125a9ac7862b09d13b5b3b51b8b\">Japan\u2019s exports have slowed<\/a>\u00a0due to tariffs<\/p>\n<p><em>AP Business Writers Matt Ott and Elaine Kurtenbach contributed.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By STAN CHOE, AP Business Writer NEW YORK (AP) \u2014 Wall Street slumped on Wednesday under the weight of pressure from the bond market, where Treasury yields climbed on worries about the\u00a0U.S. government\u2019s spiraling debt and other concerns. Related Articles Wall Street flips to losses after spending bill passes the House raising anxiety over US&hellip;<\/p>\n","protected":false},"author":1,"featured_media":275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[],"_links":{"self":[{"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/posts\/382"}],"collection":[{"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/comments?post=382"}],"version-history":[{"count":1,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/posts\/382\/revisions"}],"predecessor-version":[{"id":383,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/posts\/382\/revisions\/383"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/media\/275"}],"wp:attachment":[{"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/media?parent=382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/categories?post=382"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.agencywebdesigners.com\/index.php\/wp-json\/wp\/v2\/tags?post=382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}