Good evening, this is Markets Desk with your closing brief.
Equities finished mostly lower Tuesday as Treasury yields continued their climb, keeping pressure on rate-sensitive sectors. The major indexes attempted a midday recovery but sellers returned into the close, with rising borrowing costs doing most of the damage and leaving bulls with little to cheer heading into Wednesday's session.
Shifting to policy risk, twenty-five Democratic-led states filed suit against the Education Department over new student loan borrowing caps, arguing the Trump administration overstepped its legal authority. The caps affect professional borrowers including nurses, and the litigation adds another layer of regulatory uncertainty that could ripple through consumer credit markets and the broader student lending ecosystem.
And in a story drawing sharp legal scrutiny, the Justice Department's settlement of Trump's leaked tax return lawsuit contains language that permanently bars the IRS from pursuing examinations of Trump, affiliated individuals, and related business entities, covering all returns filed before the settlement date. Legal observers are calling the scope of that waiver extraordinarily broad, and the political and institutional fallout is only beginning to take shape.
That's the tape. Markets Desk, signing off the floor.
