Together with the speaker of the house Mike Johnson (R-la) at his side, US President Donald Trump speaks to the press after a republican meeting in the American Capitol on May 20, 2025 in Washington
Tasos Catopodis Getty Images News Getty images
This is one bad headline after the other from the White House. Similarly to the developed rockery markets-only temporarily, because the clock is still ticking during the break at “mutual tariffs”-the use of US debt ballooning causes another wide sale on the markets. This time, investors are careful because the tax account of President Donald Trump is Forecast adding from 3 trillions to $ 5 trillion To the US debt, Reuters informed, citing impartial analysts.
The fiscally questioned by us, which means that investors will demand higher returns to maintain the country's debt. Indeed, the treasure's profitability increased on Wednesday. The 30-year profitability of treasury bonds exceeded the level of 5% for the second time this week, and 10-year trade was 4.61%, the highest than February. While rising profitability means a decrease in bond prices, they also promise higher returns with a potentially lower risk, struggling with the charm of action.
Under the pressure of an increase in the profitability of the treasure – which means increased costs of loan for companies and consumers – – American markets were sold on Wednesday, a sharp reversal from the rally starting on May 12, which gave the S&P of a six -day win series. Unlike tariffs, which Trump seems to be able to conjure up or reject his hand unilaterally, the tax account must go through different layers of the government and be agreed by crazy politicians. It is hard to imagine that “Trump Put” is happening here.
What you need to know today
Sale in US markets
American markets fell on Wednesday On worries related to the deteriorating fiscal health of the country. . S&P 500 lost 1.61%, Industrial average Dow Jones fell by 1.91% and NASDAQ composite gave up 1.41%. Treasury will increaseWith 30-year income reaching 5.085%, the highest since October 2023, while 10-year income Listed at 4.607%, the level is not visible from February.
Threat of US debt extension
. The situation of debt and deficit in the USA is bad And in the face of real prospects for deterioration, starting a loud lowering of credit rating from Moody's and the next sales of Stempede in shares and bonds, writes Jeff Cox from CNBC. If US President Donald Trump's Bill spending “big, beautiful” The transfer, there are fears that the US deficit can expand even more and maintain a high level of treasury.
Bitcoin exceeds the previous high
Elsewhere on the markets, pan-European Stoxx 600 index Closed mainly flat. Great Britain FTSE 100 lifted 0.06% among the data showing the annual inflation rate in the country, heating to higher than expected 3.5% in April with 2.6% in March. Bitcoin prices touched a new level of USD 109,857breaking your January record.
Openai attracts the startup ions Ive
– Openai said in Blog post Wednesday that he is buying the previous ones Apple Ive's design director Startup of artificial intelligence devices for around $ 6.4 billion In the whole agreement. Opeli said he pays $ 5 billion in the transaction because he is already the owner of 23% of the company. The contract brings OpenAi to the world of equipment and emphasizes the growing sense in the Silicon Valley Smart AI assistants can raise the world of gadgets.
IPO hinges health prices
Hinge health valued his IPO at $ 32 per share On Wednesday, at the highest end of the expected range. At the price of IPO, the health of the hinges is worth around $ 2.6 billion, although this number may be a higher diluted base. This is much down From a private market valuation in the amount of $ 6.2 billion in October 2021, the company uses software to help patients treat acute musculoskeletal injuries, chronic pain.
(Pro) Boeing can provide: etihad
Etihad Airways in Abu Dhabi claims that he can move around turbulence BoeingDelivery delays, even if it doubles a large row of a wide body and a review of a fleet worth many billions of dollars. This is why the Persian Gulf carrier is confident In cooperation with a tired American aircraft manufacturer.
And finally …
Traffic in front of the Central Bank of Brazil in Brasilia, Brazil, on Monday, June 17, 2024.
Bloomberg Bloomberg Getty images
Emerging markets said that they see the next bull because the narrative narrative “Sell us”
The actions of the emerging markets are again in the spotlight, because the narrative “Sell us” gained a fresh shoot after a recent reduction of credit rating by Moody.
“Weaker American dollar, the profitability of American bonds, economic recovery in China … Nothing will work better than shares in the emerging market,” said Bank of America, headed by Michael Hartnett's investment strategist in the note.
Similarly, JPMorgan updated the market shares emerging from neutral to overweight on Monday, citing the thawing of commercial tensions and attractive US-chin.
Erosion of trust in American assets with Sale in the USA Treasurys, Accities and GreenbackHe fueled stubborn for emerging markets.