MW Dow logs worst day in a month. Here are the reasons driving the rout.

By Isabel Wang

The yield on the 30-year Treasury bond hovers at its highest level since Oct. 25, 2023

The stock market's selloff picked up steam on Wednesday, sending the Dow Jones Industrial Average to its steepest daily decline in a month.

The blue-chip index DJIA tumbled over 800 points, or 1.9%, to end at 41,860.44, while the S&P 500 SPX close 1.6% lower, and the Nasdaq Composite COMP slumped 1.4%, according to FactSet data.

The Dow's biggest drag was shares of UnitedHealth Group Inc., $(UNH)$ which fell 5.8% after HSBC cut its rating on the stock to reduce, a month after downgrading it to hold. The bank also slashed its stock-price target to $270 from $490, with the new target implying about 12% downside from current levels.

Consumer stocks also came under pressure on Wednesday. Shares of Nike Inc. $(NKE)$ fell more than 4.1%, while those of TJ Maxx parent $(TJX)$ tumbled 2.9% after the discount retailer said tariff costs could cause it to fall short of Wall Street's fiscal second-quarter earnings projections. Royal Caribbean Group's $(RCL)$ stock fell 4.6%, while Norwegian Cruise Line Holdings' $(NCLH)$ stock was off over 5.2%, according to FactSet data.

Shares of Target Corp. (TGT) also slid 5.2% after the company said that it faced a highly challenging retail environment in the first quarter, missing earnings expectations and cutting its full-year profit outlook.

Apple Inc.'s $(AAPL)$ stock slid 2.3% after OpenAI said it will acquire the AI-device startup co-founded by Apple veteran Jony Ive in a nearly $6.5 billion all-stock deal.

See: Stocks tumble as weak bond-market auction has investors wondering how U.S. will manage its debt

The selloff in equities came as Treasury yields moved back to levels that investors feared could put pressure on the U.S. economy. The yield on the 30-year Treasury bond BX:TMUBMUSD30Y rose 12.2 basis points, to 5.089% as of 3 p.m. Eastern time, its highest level since Oct. 25, 2023. The 10-year rate BX:TMUBMUSD10Y was up 11.5 basis points, at 4.595%, according to Dow Jones Market Data.

The spike in Treasury yields followed weakening demand for U.S. government debt and growing concerns over the budget deficit. An auction of 20-year U.S. government bonds saw weak demand on Wednesday at 1 p.m. Eastern as investors monitored progress the country's fiscal trajectory.

Investors also have been following developments on President Donald Trump's multitrillion-dollar tax-cut proposal, as well as its potential to worsen the U.S. budget deficit, which was a risk highlighted by Moody's when it downgrade the U.S.'s credit rating last week.

To be sure, investors in stocks may have been simply waiting for an excuse to pause the rally, which was revived by easing trade tensions between the U.S. and China.

The S&P 500 has climbed nearly 5% so far in May, while the Dow was up nearly 3% and the Nasdaq Composite has surged over 8%, according to FactSet data.

-Isabel Wang

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May 21, 2025 16:37 ET (20:37 GMT)

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