US stock futures held steady on Thursday after major indexes experienced significant declines in the previous session. Renewed concerns about the expanding federal deficit contributed to the downturn, with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all posting substantial losses. Investor anxiety surrounding a proposed federal budget, which could worsen the existing deficit, led to a surge in Treasury yields.
- The Dow dropped 1.91% on Wednesday.
- Investor anxiety over a proposed federal budget drove Treasury yields higher.
The substantial decrease in the asset’s value reflects broader market apprehension regarding fiscal policy and its potential implications for economic stability. The fluctuation in treasury yields suggests investors are sensitive to factors that could impact future economic performance. This could indicate a period of heightened volatility for the asset as markets react to evolving economic signals and policy developments.