US stocks stumbled yesterday as worries over expanding US debt and President Trump's proposed tax bill sent Treasury yields surging.
The Dow plunged 1.9%, The S&P 500 slid 1.6%, and the Nasdaq fell 1.4%.
A 20-year bond auction contributed to the sharp climb in yields, with the benchmark 10-year Treasury yield adding 4.59%.
The bond market just broke the rally. A weak 20-year auction sent yields spiking and stocks sinking, ending the S&P 500ās six-day winning streak. The 30-year rose to 5.09% (levels not seen since 2023) as buyers balked at absorbing more U.S. debt. Bond demand is down, the US doesnāt plan to stop borrowing, and the Fed wonāt cut rates due to threat of inflation. With deficits climbing and the Fed on hold, call it what you wantāa panic, a warning shot, or just the sound of the debt bomb ticking louder.
Dollar dips as G-7 watches President Trumpās currency stance. The US dollar fell to a two-week low as traders watched the G-7 meeting for signs the Trump administration may favor a weaker currency. This weakness typically benefits multinational companies and commodities priced in dollars.
Trumpās āBig, Beautiful Tax Billā passed by razor-thin margin. The bill cleared the House on a 215-214 vote and is on to the Senate after 21 hours of editing and debating its contents. Some of this 1,000 page piece of legislationās goals are to make Trumpās 2017 tax cuts permanent and to get rid of taxes on tips.
Bitcoin hitsāthen pulls back. Bitcoin briefly rocketed to a new all-time high of over $111,000, eclipsing its January peak, before reversing course and falling with the broader market sentiment. The initial rally was attributed to improved risk sentiment and continued dollar weakness.
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Odds that the Fed will cut rates in June and/or July?
Nvidia CEO Jensen Huang declared US export controls on AI chips to China were “a failure” that cost American companies billions in lost sales.
China threatened legal action against any organization or individual assisting the US in discouraging the use of Chinese advanced semiconductors.
US importers are racing to establish bonded warehouses that allow them to delay or avoid tariff payments, driving record application volumes for these special customs-controlled facilities.
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OpenAI acquired io for $6.5 billion, with renowned Apple designer Jony Ive now leading OpenAI's creative and design work.
Crusoe Energy secured $11.6 billion in financing to construct an eight-building datacenter for OpenAI in Texas.
Oil prices slid 0.7% after news broke that the US and Iran will resume nuclear talks tomorrow.
A new CBO analysis found that President Trumpās legislative package would reduce resources for the bottom 10% of earners by 4% by 2033.
Rystad Energyās Priya Walia warned that a potential Iranian retaliation could disrupt 500,000 barrels per day of oil flow through the Strait of Hormuz.
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š®š¹ Italy's Prime Minister Giorgia Meloni touted a narrowing BTP-Bund spread as 10-year yields stayed above 3.5%.
š¬š§ UK inflation jumped to 3.5% in April, its highest in over a year, driven by a surge in water and sewerage costs and higher household bills.
