The US markets ended sharply lower on Wednesday as stocks showed a more substantial move to the downside dragging major averages into negative territory as the day progressed.
The weakness on Wall Street came amid lingering uncertainty about the outlook for trade and the global economy following the surge seen over the past several weeks, where stocks have shown a substantial recovery from their early April lows.
Besides, investors adopted risks averse approach as they seek more clarity on progress of new trade deals.
President Donald Trump's sweeping tax and spending bill is one step closer to a full vote in the House of Representatives, kept the market participants on edge, as this proposal would add more than $2.5 trillion to the federal debt over the next decade.
Moreover, treasury yields saw further upside after the Treasury Department revealed this month's auction of $16 billion worth of twenty-year bonds attracted below average demand.On the sectoral front, substantial weakness has been seen in Airline stocks resulting in a 3.7 percent nosedive by the NYSE Arca Airline Index.
Besides, considerable weakness also emerged among banking stocks, as reflected by the 3.1 percent slump by the KBW Bank Index.Dow Jones Industrial Average plunged 816.80 points or 1.91 percent to 41,860.44, S&P 500 slumped 95.85 points or 1.61 percent to 5,844.61 and Nasdaq tumbled 270.07 points or 1.41 percent to 18,872.64.