U.S. stocks ended lower on Wednesday as 20-year bond auction saw weak demand, and U.S. Treasury yields surged.
The Dow Jones Industrial Average dropped 816.80 points, or 1.91 percent, to 41,860.44. The S and P 500 fell 95.85 points, or 1.61 percent, to close at 5,844.61, while the Nasdaq Composite lost 270.07 points, or 1.41 percent, ending at 18,872.64, its first negative day in three.
Ten of the eleven major S and P 500 sectors closed in negative territory. Real estate and health care led the declines, falling 2.63 percent and 2.37 percent, respectively. Communication services was the only sector to post a gain, rising 0.67 percent.
The downturn came as U.S. Treasury yields climbed, with the 10-year yield nearing 4.6 percent and the 30-year yield rising above 5 percent. Yields spiked further after the U.S. government's 16-billion-U.S.-dollar auction of 20-year bonds received weaker-than-expected demand, resulting in a higher yield than markets had anticipated.
Meanwhile, investors kept a close eye on developments in Washington, D.C., where debate continues over U.S. President Donald Trump's tax-and-spending bill. The proposed legislation would extend existing tax cuts and introduce new ones, but is projected to add roughly 3 trillion U.S. dollars to the federal deficit over the next decade.
The bond-driven pressure on equities was compounded by disappointing earnings reports from major retailers. Target dropped 5.21 percent after slashing its annual forecast, citing reduced consumer spending and lower confidence. Lowe's lost 1.68 percent after reaffirming its guidance, and TJX fell 2.89 percent after maintaining its outlook, assuming tariffs with China remain unchanged.
US stocks close lower amid rising Treasury yields
US stocks close lower amid rising Treasury yields
The Iranian government is focusing on public concerns and maintaining stable supplies of essential goods amid recent protests, Iranian President Masoud Pezeshkian said in a televised interview on Sunday.
In the city of Karaj, northwest of the capital Tehran, daily life has largely continued as normal. A video filmed by a local resident on Sunday shows food stores open and grocery shelves fully stocked.
"This is the block near my home, and there are some food stores here. Daily life continues here. Last night we did not see many protests in Karaj. Right now the city is very safe. This is a grocery store close to my home. All the food is available; nothing is in shortage. Here are noodles and different types of beans. Here are dairy products, cheese, and yogurt. I also checked other grocery stores and didn't see any shortages. Everything is available," said local resident Ali Reza.
Iranian officials have described recent disturbances as acts orchestrated by the "enemy," including some carried out by well-trained and armed "terrorists." The incidents have caused casualties among security personnel and civilians, as well as property damage.
The Secretary of Iran's Supreme National Security Council Ali Larijani has directed authorities to severely punish the "terrorists."
Meanwhile, Iran's police chief Ahmad-Reza Radan said on Sunday that the police had raised alert levels and arrested several leaders of the troublemakers during the operations on Saturday.
President Pezeshkian noted in the interview that the normal demands of the Iranian people are reasonable and justified, but they must realize that triggering riots and carrying out terrorist acts are the enemy's attempts to undermine the country. He urged the public to remain vigilant.
Also on Sunday, Iranian Parliament Speaker Mohammad Baqer Qalibaf warned that Tehran would regard U.S. and Israeli bases and facilities in the Middle East as "legitimate targets" if Washington takes military action against Iran. His remarks followed media reports saying U.S. President Donald Trump is "seriously considering authorizing a strike" against Iran.
Iranian state media reported that at least 109 members of Iran's security forces have been killed in clashes since the protests began 14 days ago. Meanwhile, human rights groups based outside the country said the number of protesters killed has exceeded 200, though the figure could not be independently verified.
The protests initially erupted over a sharp depreciation of the rial and sweeping subsidy reforms. Iranian authorities have blamed the unrest on foreign-linked agents and sanctions imposed by the United States.
Iranian president says government focusing on ensuring supplies amid protests
