<div class="tr-summaryinfo">Indexes: Dow down 1.91%, S&amp;P 500 down 1.61%, Nasdaq down 1.41%Wolfspeed plunges after reports of potential bankruptcyTarget falls after cutting annual sales forecastUnitedHealth drops after report on secret payments, HSBC downgrade</div>Updates to 4:10 PM ETBy Chibuike Oguh NEW YORK, May 21 (Reuters) - U.S. stocks closed sharply lower on Wednesday as Treasury yields spiked on worries that U.S. government debt would swell by trillions of dollars if Congress passes President Donald Trump's proposed tax-cut bill.All three major Wall Street indexes closed with their biggest daily losses in a month. Small cap stocks also fell sharply, with the Russell 2000 index .RUT posting its biggest daily loss since April 10. Longer-dated Treasury yields rose after the Treasury Department's $16 billion sale of 20-year bonds met soft demand from investors. The yield on benchmark U.S. 10-year notes US10YT=RR rose 10.8 basis points to 4.589%. During the session, the 10-year yield hit its highest since mid-February.A Congressional committee set an unusual hearing as House Republicans sought to overcome internal divisions about proposed budget cuts, including to the Medicaid health program.Nonpartisan analysts said the Republican bill could add between $3 trillion and $5 trillion to the federal government's $36.2 trillion debt.&#34;There are any number of headlines, all of which have consequences if indeed they come to pass,&#34; said Michael Farr, chief executive officer at investment advisory firm Farr, Miller &amp; Washington in Washington. &#34;Many of these things are threats that fade rather quickly and markets are trying to digest what's important or what's material or what's perhaps negotiating bluster on behalf of the administration.&#34; The Dow Jones Industrial Average .DJI fell 816.80 points, or 1.91%, to 41,860.44, the S&amp;P 500 .SPX lost 95.85 points, or 1.61%, to 5,844.61 and the Nasdaq Composite .IXIC lost 270.07 points, or 1.41%, to 18,872.64. Ten of the 11 S&amp;P 500 sectors fell, led by real estate, healthcare, financials, utilities, consumer discretionary and technology equities. Communication services stocks gained.Google parent Alphabet GOOGL.O rose 2.7%, while Nvidia NVDA.O lost 1.9%, Apple AAPL.O fell 2.3% and Tesla TSLA.O shed 2.7%.UnitedHealth Group UNH.N dropped nearly 6% after a Guardian report said the healthcare conglomerate secretly paid nursing homes thousands of dollars in bonuses to help reduce hospital transfers for ailing residents. HSBC downgraded the stock to &#34;reduce&#34; from &#34;hold&#34;.Target TGT.N fell 5.2% after slashing its annual forecast due to a pullback in discretionary spending. Wolfspeed WOLF.N plunged nearly 60% following a report that the semiconductor supplier was preparing to file for bankruptcy within weeks.The S&amp;P 500 has climbed more than 17% from its April lows, when Trump's reciprocal tariffs roiled global markets.Morgan Stanley upgraded its stance on U.S. equities to &#34;overweight&#34;, saying the global economy was still expanding, albeit slowly, amid policy uncertainty.Declining issues outnumbered advancers by a 5.82-to-1 ratio on the NYSE. There were 188 new highs and 104 new lows on the NYSE. The S&amp;P 500 posted 15 new 52-week highs and 4 new lows while the Nasdaq Composite recorded 53 new highs and 92 new lows. Volume on U.S. exchanges was 19.39 billion shares, compared with the 17.5 billion average for the full session over the last 20 trading days.

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U.S. stocks fell sharply on concerns over rising government debt linked to President Trump's tax-cut proposal, with all major indexes experiencing significant losses. The S&P 500 dropped 1.62%, the Nasdaq fell 1.41%, and the Dow Jones decreased by 1.92%. Treasury yields rose, reflecting investor anxiety. Notable declines included Target, which cut its sales forecast, and Wolfspeed, facing potential bankruptcy. UnitedHealth also dropped after a report on secret payments, leading to an HSBC downgrade. Morgan Stanley upgraded its outlook on U.S. equities despite ongoing policy uncertainty.

- U.S. stocks closed sharply lower, with the Dow down 1.91%, S&P 500 down 1.61%, and Nasdaq down 1.41%, amid concerns over rising Treasury yields and potential increases in government debt from proposed tax cuts.  
- The Treasury Department's bond sale faced weak demand, leading to a rise in longer-dated Treasury yields, while significant declines were noted in small-cap stocks and major sectors.  
- Notable stock movements included a nearly 60% plunge for Wolfspeed amid bankruptcy reports and a 5.2% drop for Target after cutting its sales forecast.

US STOCKS-Wall Street stocks tumble as worries mount about US debt