The S&P 500 Index ($SPX) (SPY) Wednesday closed down -1.61%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -1.91%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.34%. June E-mini S&P futures (ESM25) are down -1.66%, and June E-mini Nasdaq futures (NQM25) are down -1.43%.
Stock indexes on Wednesday settled sharply lower, with the S&P 500 and Nasdaq 100 falling to 1-week lows. Stocks and the dollar retreated Wednesday due to the reduced attractiveness of US assets to foreign investors with the ongoing trade war, last Friday’s Moody downgrade of the US credit rating, and the negative US budget deficit outlook in the Republican’s reconciliation bill. Losses in stocks accelerated Wednesday afternoon when weak demand for the Treasury’s $16 billion 20-year T-bond auction sent bond yields soaring, with the 10-year T-note yield jumping +10 bp to 4.59%.
