Wall Street stocks tumble as worries mount about US debt
U.S. stocks closed sharply lower on Wednesday as Treasury yields spiked on worries that U.S. government debt would swell by trillions of dollars if Congress passes President Donald Trump's proposed tax-cut bill.
All three major Wall Street indexes closed with their biggest daily losses in a month. Small cap stocks also fell sharply, with the Russell 2000 index posting its biggest daily loss since April 10.
Longer-dated Treasury yields rose after the Treasury Department's $16 billion sale of 20-year bonds met soft demand from investors. The yield on benchmark U.S. 10-year notes rose 10.8 basis points to 4.589%. During the session, the 10-year yield hit its highest since mid-February.
A Congressional committee set an unusual hearing as House Republicans sought to overcome internal divisions about proposed budget cuts, including to the Medicaid health program.
Nonpartisan analysts said the Republican bill could add between $3 trillion and $5 trillion to the federal government's $36.2 trillion debt.
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"There are any number of headlines, all of which have consequences if indeed they come to pass," said Michael Farr, chief executive officer at investment advisory firm Farr, Miller & Washington in Washington. "Many of these things are threats that fade rather quickly and markets are trying to digest what's important or what's material or what's perhaps negotiating bluster on behalf of the administration."
The Dow Jones Industrial Average fell 816.80 points, or 1.91%, to 41,860.44, the S&P 500 lost 95.85 points, or 1.61%, to 5,844.61 and the Nasdaq Composite lost 270.07 points, or 1.41%, to 18,872.64.
Ten of the 11 S&P 500 sectors fell, led by real estate, healthcare, financials, utilities, consumer discretionary and technology equities. Communication services stocks gained.
Google parent Alphabet rose 2.7%, while Nvidia lost 1.9%, Apple fell 2.3% and Tesla shed 2.7%.
UnitedHealth Group dropped nearly 6% after a Guardian report said the healthcare conglomerate secretly paid nursing homes thousands of dollars in bonuses to help reduce hospital transfers for ailing residents. HSBC downgraded the stock to "reduce" from "hold".
Target fell 5.2% after slashing its annual forecast due to a pullback in discretionary spending.
Wolfspeed plunged nearly 60% following a report that the semiconductor supplier was preparing to file for bankruptcy within weeks.
The S&P 500 has climbed more than 17% from its April lows, when Trump's reciprocal tariffs roiled global markets.
Morgan Stanley upgraded its stance on U.S. equities to "overweight", saying the global economy was still expanding, albeit slowly, amid policy uncertainty.
Declining issues outnumbered advancers by a 5.82-to-1 ratio on the NYSE. There were 188 new highs and 104 new lows on the NYSE.
The S&P 500 posted 15 new 52-week highs and 4 new lows while the Nasdaq Composite recorded 53 new highs and 92 new lows.
Volume on U.S. exchanges was 19.39 billion shares, compared with the 17.5 billion average for the full session over the last 20 trading days.
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Indian Express
8 minutes ago
- Indian Express
Tariff Tracker, June 14: US-China talks restore May 12 status, World Bank forecasts slowdown
Dear reader, Washington will host a massive military parade commemorating 250 years of the US Army on Saturday (June 14), which also happens to be US President Donald Trump's 79th birthday. The event is estimated to cost between $25 million and $45 million, and feature over 6,000 soldiers, 128 army tanks, armoured personnel carriers and artillery, as well as an aerial display featuring 62 aircraft, according to AP reporting. Traditionally, US military parades have been conducted at the end of a war to celebrate victory or to welcome the returning troops. The last military parade took place in 1991 at the end of the Gulf War, and was a less contentious event than Saturday's festivities. The timing is significant as well. Over the last week, the Trump administration has initiated a new phase of its sweeping crackdown against illegal immigration. Raids by the Immigration and Customs Enforcement (ICE) in the garment district in Los Angeles resulted in a flurry of arrests, triggering protests by residents. As the standoff escalated, the US President fanned the fire further, deploying the National Guard and Marines in the city. These moves are unprecedented – the last time a US president deployed the National Guard bypassing a state governor's mandate, it was Lyndon B Johnson in 1958 (check year) seeking to protect Civil Rights activists marching from Selma to Montgomery in Alabama. The use of the National Guard, typically a decision exercised by the state, was challenged in court by California Governor Gavin Newsom, and a federal court ruled in his favour on Friday, ordering control of the troops to be restored to Newsom. However, this order was almost immediately stayed following an appeal by the Trump administration. The latest round of trade talks between the US and China this week reportedly resulted in a handshake agreement between the officials of the two countries on Wednesday (June 11) in London. In a social media post, Trump wrote, 'OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI (Jinping) AND ME.' While details of the agreement are still to be revealed, reports suggest a return to the terms agreed by both countries on May 12 in Geneva. You will recall that the US and China agreed to lower their tariffs on each other by 115%, reducing US tariffs on China to 30% and Chinese tariffs to 10%. The escalating trade war between the US and China began in February, with Trump announcing a 10% fentanyl tariff on China along with tariffs on Canada and Mexico, which was doubled to 20% in March. Unlike other nations, China did not immediately seek talks with the US president, and instead, announced countermeasures targeting Liquefied Natural Gas, coal, and farm machinery, among other products. Trump's Liberation Day tariff announcements singled out China, and in the days that followed, saw US tariffs on Chinese products reach 145%, while China charged 125% tariffs. China also decided to hit the US (and by extension the rest of the world) where it hurts most, by announcing an elaborate licensing system to restrict rare earths exports, citing a national security risk. We explained why this move is significant in the Tariff Tracker on June 2. The May 12 agreement had extracted an assurance from the Chinese side to resume rare earths exports. 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The May 29 ruling had said that Trump had exceeded his powers as president in using the emergency powers under the IEEPA to impose tariffs on all countries, using the US's trade deficit as a rationale. In the Tariff Tracker on May 29, we explained how emergency laws have been used in the US, and how the federal court ruled thus. In its biannual Global Economic Prospects report, the World Bank forecasted a global economic slowdown due to 'substantial headwinds, emanating largely from an increase in trade tensions and heightened global policy uncertainty.' However, this would likely stop short of a full-blown recession. The World Bank also announced that the fallout of Trump's tariffs could lead to the weakest decade of economic growth since the 1960s, with global output expected to slow to 2.3% in 2025 from 2.8% last year. The decline would be most acutely felt by the US, with growth estimated to decline to 1.4% from 2.8% last year. 'The rise in trade barriers, heightened uncertainty and the spike in financial market volatility are set to weigh on private consumption, international trade and investment,' the report said. It also anticipated a decline in investment 'due to record-high uncertainty, the rise in financing costs, and reduced domestic and external demand.' The World Bank also said that if the tariff rates were to be halved, global economic growth could rise by 0.2% over the next two years. Emerging markets and developing economies would continue to outperform developed nations this year too, but the extent of growth would not be sufficient to narrow income gaps with richer countries, boost job creation, and reduce extreme poverty. India is projected to grow by 6.3% over 2025-26, the fastest-growing large economy. In the face of global uncertainty, investments and exports would remain subdued. The number aligns with the IMF's forecast of 6.2% over the coming year in its World Economic Outlook report.
Time of India
17 minutes ago
- Time of India
'No Kings' protests sweep US as Trump stages $45 million military parade
As tanks roll through Washington's streets in celebration of the US Army's 250th anniversary, millions across the country are expected to gather in protest against what they describe as the authoritarian excesses of Donald Trump's second term. The nationwide demonstrations, under the banner 'No Kings', are taking place in roughly 2,000 locations, from major cities to rural counties, in what may become the most significant mobilisation since Trump's re-election. The protests are timed to coincide with the President's birthday and the military parade. The parade features 6,000 Army troops, 49 aircraft, 128 military vehicles, and even 25 horses. The cost is projected between $25 million and $45 million. Though the Pentagon says the parade marks the Army's historic milestone, organisers claim it is being used as a 'vanity display' by Trump. The event, which Trump had wanted to stage during his first term after witnessing France's Bastille Day celebrations in 2017, had been cancelled earlier due to high cost. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now D.C. avoided, Philadelphia becomes focal point Despite the parade's location, 'No Kings' organisers have intentionally avoided holding protests in Washington DC. Instead, Philadelphia—home to the US Constitution—will host the flagship event. A local group is also organising a 'DC Joy Day' to celebrate the city's culture without inviting confrontation near the military spectacle. According to the protest website, the goal is to draw a 'clear contrast between our people-powered movement and the costly, wasteful, and un-American birthday parade in Washington'. Live Events The coalition includes over 200 organisations such as the American Civil Liberties Union , the American Federation of Teachers, and the Communications Workers of America. Their call: 'No thrones. No crowns. No kings.' Rising tensions and pre-emptive crackdowns In the days leading up to the protest, tensions have escalated. Trump ordered National Guard and US Marine deployments to Los Angeles earlier this week, aiming to suppress anti-deportation protests. It was a move many civil rights groups have likened to Cold War-era military interventions. Interest in 'No Kings' reportedly surged following this. Republican governors in several states have also taken action. Texas Governor Greg Abbott activated his state's National Guard ahead of the protest wave. In Florida, Governor Ron DeSantis publicly stated that drivers could legally hit protesters if surrounded by a crowd. 'You don't have to sit there and just be a sitting duck and let the mob grab you out of your car and drag you through the streets. You have a right to defend yourself in Florida,' he said. Trump responds: 'I don't feel like a King' On Thursday, Trump was asked directly about the 'No Kings' protests. 'I don't feel like a king. I have to go through hell to get things approved,' he said. Earlier in the week, he had warned that protesters would be 'met with very big force', though the White House later softened that message by claiming he supported peaceful demonstrations. Still, Trump also said Tuesday: 'By the way, for those people that want to protest, they're going to be met with very big force. And I haven't even heard about a protest, but you know, this is people that hate our country.' A year of growing dissent The scale of anti-Trump demonstrations has grown since his second term began in February. According to the Harvard-based Crowd Counting Consortium, there were three times as many protests by March 2025 as during the same period in 2017. These actions have spanned causes, including mass deportations, federal budget cuts, and public opposition to Elon Musk's growing influence in federal contracts. The previous largest day of protest, the 'Hands Off' march in April, drew around 1.5 million people according to independent estimates. The consortium stated in a new analysis: 'Overall, 2017's numbers pale in comparison to the scale and scope of mobilisation in 2025 – a fact often unnoticed in the public discourse about the response to Trump's actions.' Protests stress non-violence Organisers of 'No Kings' have reiterated a commitment to nonviolence. Participant guides distributed ahead of Saturday's events urge attendees to de-escalate potential conflicts and avoid provocation. The organisers' statement reads: 'We're showing up everywhere he isn't—to say no thrones, no crowns, no kings.' Despite the tense atmosphere, the message from the streets remains clear. As Trump's display of force takes centre stage in Washington, much of the rest of America is choosing to show a different face—one of defiance, unity, and peaceful resistance.
India Today
21 minutes ago
- India Today
Trump military parade live updates: Army's $45 million celebration to be held under tight security, rain alert
Washington is set to host an extravagant military parade on Saturday marking the US Army's 250th anniversary, coinciding with President Donald Trump's 79th birthday. The 90-minute spectacle will feature over 6,000 troops, 150 military vehicles-including Abrams tanks and HIMARS-and 62 aircraft such as Apache helicopters and vintage WWII bombers. Marching formations will chronicle the Army's history from the Revolutionary War to modern-day operations. The event concludes with a parachute jump by the Army's Golden Knights, a fireworks display, and the president swearing in new recruits.
