A combination of fears, including projections that Trump’s agenda bill will expand deficits, moved investors to sell.

Fears of a global government borrowing glut — likely to be compounded by the GOP’s spending and tax cut bill — helped fuel an unusually weak auction for U.S. government bonds that sent markets into a tailspin Wednesday.

The broad S&P 500 fell 1.6%, while the Dow Jones Industrial Average declined more than 800 points, or 2%. The tech-heavy Nasdaq was off 1.4%.

Investors are increasingly worried that central banks around the world, including the U.S. Federal Reserve, will have to hold interest rates higher for longer. That scenario could help keep a lid on inflation, which can be fueled by rising levels of government spending.

  • grue@lemmy.world
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    16 days ago

    I’m sure Trump himself repeatedly questioning the validity of the debt and threatening to default on it had nothing to do with it.