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5d ago

U.S. House Passes Trump’s $3.8 Trillion Tax Bill, Fueling Market Turmoil

The legislation, projected to significantly expand the national debt, has driven bond yields to multi-year highs and triggered global financial market unease.

U.S. dollar, Euro and Pound banknotes are seen in this illustration taken May 4, 2025.
Tariff and fiscal fears are dragging the stock market and pushing bond yields higher.
NEW YORK, NEW YORK - MAY 21: Traders work on the floor of the New York Stock Exchange (NYSE) on May 21, 2025 in New York City. The Dow dropped over 800 points as continued worries about tariffs and the state of the U.S. economy persist. (Photo by Spencer Platt/Getty Images)

Overview

  • The U.S. House narrowly approved President Trump’s $3.8 trillion tax-and-spending bill, which could add significantly to the country’s $36 trillion debt over the next decade.
  • Moody’s recent downgrade of the U.S. credit rating has intensified concerns about fiscal sustainability and shaken investor confidence in U.S. assets.
  • Yields on 30-year Treasury bonds surged to 5.15%, the highest level since October 2023, reflecting growing unease over long-term borrowing costs.
  • Major U.S. stock indices fell over 1.5% on Wednesday, with global bond markets experiencing a broad sell-off as investors reassessed risk.
  • Bitcoin reached a record high, surpassing $111,000, as investors sought alternatives to traditional assets during heightened market uncertainty.