U.S. stock index futures edged lower Wednesday night as market sentiment remained fragile amid growing concerns over high government debt and uncertainty surrounding President Donald Trump’s proposed tax cut bill. Investors fear the bill could inflate spending and deepen the federal deficit.
S&P 500 Futures dipped to 5,859.75, Nasdaq 100 Futures slipped 0.1% to 21,142.75, and Dow Jones Futures fell 0.1% to 41,904.0 by 20:03 ET. This followed a sharp decline on Wall Street, driven by rising Treasury yields and economic anxiety.
The S&P 500 dropped 1.6% to 5,844.55, while the NASDAQ Composite fell 1.4% to 18,872.64. The Dow Jones Industrial Average tumbled 1.9% to 41,860. Markets were rattled after Moody’s downgraded the U.S. credit outlook, compounding fears triggered by soft demand in the Treasury’s $16 billion 20-year bond auction.
Trump’s tax cut bill, recently cleared by a House committee, is expected to face a vote soon. However, traders are worried that slashing federal revenues without offsetting measures could worsen the national debt burden. Trump has pointed to tariffs as a fiscal offset, but revenue from these measures remains limited.
Tech stocks underperformed ahead of key earnings from Nvidia (NASDAQ:NVDA) next week, with investors locking in profits. Broader economic concerns were further heightened by disappointing retail signals. Target (NYSE:TGT) cut its annual guidance, citing slowing consumer demand. Lowe’s (NYSE:LOW) exceeded Q1 expectations but forecast flat annual profits, while Home Depot (NYSE:HD) warned of rising prices due to tariffs. Walmart (NYSE:WMT) also previously flagged inflationary risks.
With debt worries and trade policy concerns in focus, volatility is likely to persist across equity and bond markets, as investors await clarity on fiscal direction and earnings results.


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