Fiscal Fears and Market Moves: U.S. Stocks Waver Amid Tax Bill Turmoil

U.S. stock index futures declined and Treasury yields rose on Wednesday as investors grappled with fiscal uncertainties. The focus was on discussions surrounding President Trump's tax-cut bill, which faced internal Republican disputes.

The House Rules Committee scheduled an unusual 1 a.m. ET hearing to debate the proposed legislation, as Trump met with lawmakers in an unsuccessful attempt to solidify support. Economic forecasters raised concerns about U.S. federal deficits in the context of tariffs and reduced growth.

Market reactions were noticeable, with technology stocks like Nvidia experiencing losses. Meanwhile, Moody's downgraded the U.S. sovereign credit rating, heightening concerns. Despite these challenges, some analysts remain optimistic about the expanding global economy.

(With inputs from agencies.)