From Yahoo Finance: 2025-05-20 22:13:00

Major stock indexes and the dollar fell as investors worried about the U.S. fiscal outlook and Treasury yields climbed after a poorly received sale of 20-year U.S. bonds. The U.S. Treasury Department saw soft demand for the $16 billion sale, reinforcing investor reluctance to U.S. assets. The Dow fell 816.80 points, or 1.91%, to 41,860.44, the S&P 500 fell 95.85 points, or 1.61%, to 5,844.61, and the Nasdaq Composite fell 270.07 points, or 1.41%, to 18,872.64.

Concerns persist over President Trump’s tax-cutting bill potentially adding $3 trillion to $5 trillion to the national debt. Moody’s recent credit rating downgrade has heightened worries about the U.S.’s $36 trillion debt. Progress on U.S. trade talks and tariff negotiations remains uncertain, with Republicans divided over tax legislation details.

European stocks dipped, with the STOXX 600 index easing 0.04%. Yields on 20-year U.S. debt rose to 5.127%, the highest since November 2023. The euro strengthened against the dollar to $1.1334, while the pound hit its highest level since February 2022. The yen also gained against the dollar, rising to 143.62 yen.

Yields on 30-year Japanese government bonds surged to new records following a poor auction. Bitcoin hit a record high, settling at $108,261.87. Oil prices fell after Oman’s foreign minister announced new Iran-U.S. nuclear talks. Gold rose to $3,312.77 an ounce, and investors monitored the Group of Seven finance ministers’ meetings in Canada.



Read more at Yahoo Finance: Stocks, dollar drop, yields gain; soft demand in 20-yr Treasury auction