Market Volatility: Tax-Cut Bill Spurs Investor Concerns

Wall Street's leading indexes experienced a slippage on Wednesday, accompanied by a rise in government bond yields as investors observed the critical discussions on President Trump's tax-cut bill. The proposal has stoked apprehension regarding its potential impact on the nation's escalating debt.

The House Rules Committee set an unusual pre-dawn hearing aiming to resolve Republican differences over proposed cuts to Medicaid and tax breaks for high-cost areas. Some nonpartisan analyses suggest the plan could add between $3 trillion to $5 trillion to the existing $36.2 trillion federal debt, intensifying the spotlight on fiscal stability.

Stocks reacted sharply with major indices taking a hit. The Dow Jones, S&P 500, and Nasdaq posted notable losses. In parallel, bond yields witnessed upward movement, aggravated after Moody's downgraded the nation's credit rating. Market pressure was evident across various sectors, especially in technology and consumer discretionary, as economic uncertainty looms.

(With inputs from agencies.)