Dow Plummets as Bond Rates Soar

Stock futures fell Wednesday as traders fretted over another move higher in Treasury yields, as investors monitored the progress on a new U.S. budget bill.Futures for the Dow Jones Industrials index tumbled 301 points, or 0.7%, to 42,471Futures for the S&P 500 index slid 30.75 points, or 0.5%, to 5,929.Futures for the NASDAQ handed back 116 points, or 0.6%, to 21,331.25. The 30-year Treasury bond yield moved back above 5% on Wednesday, while the benchmark 10-year Treasury note yield traded over 4.53%. Yields moved above those key levels earlier in the week after Moody’s downgraded U.S. bonds late Friday.The latest moves come as traders look to Washington as Republican leaders work to finalize a budget bill that would lower taxes. However, the measure has faced pressure from GOP members looking for higher deductions on state and local taxes. Investors also worry the measure could worsen the U.S. deficit.Wednesday’s action comes after a tough session for the three major averages. The S&P 500 ended a six-day win streak, while the NASDAQ Composite saw its first negative day in three. The Dow fell more than 100 points, breaking a three-day positive streak.announcement of broad and steep tariffs last month.All three major averages are still above where they traded on April 2, the day Trump unveiled his import tax policy. The S&P 500 is now up on the year, a sharp reversal after at one point falling on an intraday basis into bear market territory, a term referring to a decline of at least 20% from a recent high.In Japan, the Nikkei 225 index gave up 0.6% Wednesday, while in Hong Kong, the Hang Seng advanced 0.6%. Oil prices grabbed 69 cents to $62.72 U.S. a barrel. Gold prices brightened $26.30 to $3,310.90 U.S. an ounce.