FX.co ★ US Stocks Drop on Renewed Fiscal Jitters

U.S. stocks experienced a downturn on Wednesday, with the S&P 500 and the Nasdaq each declining by 0.5% and the Dow Jones Industrial Average shedding over 300 points, building on the previous session's losses. Investor sentiment has been dampened by intensifying concerns regarding the U.S. fiscal outlook. Lawmakers are currently deliberating over President Trump's proposed tax-and-spending bill, which is anticipated to increase budget deficits by nearly $3 billion over a decade. Additionally, growing frustration exists over the slow progress in trade negotiations. Among the sectors, consumer discretionary fared the worst, whereas communication services managed to maintain gains. As the earnings season progresses, Lowe’s shares dipped approximately 1.3% despite exceeding profit expectations and maintaining its full-year forecast. In contrast, Target's shares dropped more than 6% after missing earnings estimates and revising its annual outlook downward. Furthermore, UnitedHealth saw a nearly 7% plunge following reports by the Guardian that the company had secretly paid nursing homes to minimize hospital transfers.