All three major US stock indices fell by more than 1% on Wednesday after a poorly received auction of US government bonds, which also saw the dollar weaken broadly.
Treasury yields climbed as the US Treasury’s $16 billion sale of 20-year bonds attracted weak demand, reinforcing concerns that investors are pulling back from US assets. The yield on 10-year US Treasury notes rose to 4.605%, up from 4.511% the previous day.
Renewed concerns over Donald Trump’s push for a tax-cutting bill, which critics warn could add between $3 trillion and $5 trillion to the national debt, added to market jitters.
By the close, the Dow Jones Industrial Average had dropped 1.91% to 41,860.01, the S&P 500 fell 1.6% to 5,844.55, and the Nasdaq Composite slid 1.4% to 18,872.64.
Bitcoin surged to an all-time high of $109,499.80 on Wednesday, fuelled by growing optimism over pro-cryptocurrency legislation in the United States and strong backing from the Trump administration.
The world’s largest cryptocurrency broke its previous record set on January 20—the day Donald Trump was sworn in as US president—marking a new milestone in a year of bullish sentiment.
The rally comes as markets anticipate the successful passage of industry-supported crypto legislation through Congress. Investor confidence has grown amid a clear shift in regulatory tone from the Trump White House compared to the more cautious approach under former SEC chairman Gary Gensler.
