US Indices Fizzle Out in the Last Minutes of Trading – US Market Wrap

Wall Street struggled to recover from a Treasury selloff that shook global markets amid fiscal concerns, with stocks giving up gains in the final stretch of trading. Bond prices and the value of the dollar increased.

After rising for the majority of the session, the S&P 500 finished slightly lower. Long-term US government bonds, which had led the recent selling on concerns about the country’s rising debt load, recovered their losses.

For several market observers, bond investors’ message is clear: Unless the United States gets its finances in order soon, the perceived risks of lending to the government will rise, as will borrowing costs on long-term Treasury debt. That would make reducing the deficit even more difficult and raise the cost of money for consumers and businesses.

The recent selling in Treasuries reflected concerns about the United States’ rising debt load, which were exacerbated after Moody’s Ratings downgraded the country as a top-tier sovereign credit on Friday. Investors are concerned that President Donald Trump’s signature tax bill, which narrowly passed the House, will exacerbate the country’s already-growing deficit.

The S&P 500 remained relatively unchanged. The Nasdaq 100 gained 0.2%. The Dow Jones Industrial Average fluctuated.
The yield on 10-year Treasuries fell six basis points, to 4.54%. A dollar index gained 0.2%. Bitcoin surpassed $111,000 for the first time.