U.S. Debt Woes Impact Markets, Bitcoin Soars to new Heights
The U.S. government’s mounting debt is causing jitters among investors, leading to a important market downturn. Despite this, Bitcoin has hit an all-time high.
On May 21, the S&P 500 fell by 0.98%, landing at 5,882.35 points. The tech-heavy Nasdaq also took a hit, dropping 0.63% to 21,232.05. The Dow Jones suffered the most, plummeting 1.46% to 42,059.08.
Investors are worried about the U.S. debt. Rising bond yields could increase the government deficit. A recent $16 billion auction of 20-year Treasury bonds saw low demand, pushing bond yields up. This followed a credit rating downgrade from Moody’s.
Meanwhile, Congress is considering a bill to extend Trump-era tax cuts. While this could boost disposable income, it may widen the federal deficit.
Bitcoin, however, is thriving.It reached a new peak, showing its potential as a safe haven. Gold also gained, climbing 0.94% to extend Trump-era tax cuts. while this could boost income, it may also widen the federal deficit.
Bitcoin, however, is benefiting from this uncertainty. It reached a new peak, while gold prices also rose 0.94% to $3,313.5 per ounce.
Most top companies on the DOW jones saw declines, including tech firms, retailers, and healthcare providers. Alphabet, though, saw its stock rise 4% on Google’s AI proclamation.
UnitedHealth’s stock dropped 6% amid reports that it tried to cut insurance payouts by paying nursing homes to reduce hospital transfers. This could lead to legal troubles.
