Stocks ease, Treasury yields rise; US tax-cut bill in focus
Business
Stocks ease, Treasury yields rise; US tax-cut bill in focus
NEW YORK (Reuters) - Major stock indexes eased while US Treasury yields rose on Tuesday as investors focused on a critical vote in Washington over US President Donald Trump's sweeping tax cuts.
Trump went to Capitol Hill on Tuesday to encourage Republican lawmakers to resolve their differences over a bill that would extend the 2017 tax cuts from his first term, among other things.
Investors are worried the bill will lead to the US budget deficit growing at a faster pace than previously expected. Moody's Investors Service downgraded the US credit rating late on Friday, fanning concerns about the country's debt load.
Graphic: A chart showing the credit rating of the US for S&P, Moody’s and Fitch since 2008.
"With the Republican bill still up in the air, there's just enough uncertainty to lead people to be a little bit more cautious and use this recent rally maybe to trim a little bit of their (stocks) portfolio," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
The S&P 500 on Monday had registered a sixth straight day of gains.
Home Depot (HD.N), opens new tab was down 0.3% with the broader market, although the home improvement retailer beat Wall Street estimates for first-quarter sales.
European stocks closed at near nine-week highs, with utilities and telecom firms leading gains.
