Elevated Treasury Yields Drag Stocks On U.S. Fiscal Outlook Worries

Stocks and the U.S. dollar slid last week as long-term Treasury yields hovered near 18-month highs, reflecting persistent concern over America's fiscal health, Reuters' Johann M. Cherian reported.

Moody’s recent downgrade of U.S. sovereign credit has left markets on edge, as a “Sell America” narrative gains steam.

All eyes are on President Trump’s tax bill, which faces a House vote within hours. Investors worry the legislation could add roughly $3.8 trillion to the national debt, which currently stands at $36 trillion.

Moody’s recent downgrade of U.S. sovereign credit has left markets on edge, as a “Sell America” narrative gains steam. The dollar is near a two-week low against major currencies.

European markets looked set for a weak open, mirroring declines in Asia, as investors await sector activity surveys for May. The data may provide insights into how European businesses are weathering global uncertainty.

As the U.S. becomes less predictable on trade, some investors are searching for safer havens outside the country, reported Rae Wee, Tom Westbrook, Vidya Ranganathan, and Faith Hung.