Stocks, bonds and the dollar fell on Wednesday as concerns mount about the premier status of American assets.

The Dow was down 850 points, or 2%. The broader S&P 500 slid 1.73% and the tech-heavy Nasdaq Composite fell 1.62%. The S&P 500 was on track for its worst day in one month.

Stocks moved sharply lower and bonds sold off after a 1 p.m. ET auction for 20-year Treasury notes that was “disappointing,” according to Chip Hughey, managing director for fixed income at Truist Advisory Services.

While the 20-year Treasury note usually garners less attention than the 10-year or 30-year notes, all eyes have been on investors’ perception of Treasuries since Moody’s on Friday downgraded US government debt.

The Treasury sold $16 billion worth of 20-year bonds, and the auction settled with a 20-year Treasury yield above 5%, signaling investors are demanding higher rates to hold US debt. The auction settled with a high yield of 5.047% compared to 4.83% at the last 20-year auction, in February.

Treasury yields have pushed higher in recent days after Moody’s announcement Friday, which stripped the United States of its last perfect credit rating. Bond prices and yields trade in opposite directions.

The yield on the 10-year Treasury note on Wednesday rose above 4.59% to hit its highest level since February and the yield on the 30-year Treasury rose above 5% to hit its highest level since 2023.

“Although Moody’s decision to downgrade the US’s sovereign credit rating on Friday from Aaa to Aa1 was unsurprising, it does add focus on the real issues at hand: the US’s growing deficit and debt burden,” Hughey said.

Stocks were lower Wednesday morning as Republicans in Congress tried to advance President Donald Trump’s “big, beautiful” tax bill. US stocks are coming off a session in the red. The S&P 500 on Tuesday snapped a six-day winning streak.

“Recent budget deliberations in Washington are not offering global investors much solace that these challenges are being incorporated into the decision-making process,” Hughey said.

The US dollar index, which measures the dollar’s strength against six major foreign currencies, slid 0.6%.

This is a developing story and will be updated.