U.S. Debt Worries Spook Markets,Bitcoin Soars to New High
Investors are getting nervous about the massive U.S. government debt. This anxiety is causing a dip in the stock markets.However, Bitcoin hit an all-time high, defying the trend.
On May 21, the S&P 500 fell by 0.98% to 5,882.35 points. The tech-heavy Nasdaq slipped 0.63% to 21,232.05,and the Dow Jones tumbled 1.46% to 42,059.08.
The U.S. debt is the main concern. Rising bond yields could boost the government deficit. The $16 billion auction for 20-year Treasury bonds showed low investor interest,causing bond yields to rise.This followed a credit rating downgrade from Moody’s.
Meanwhile, Congress is considering extending Trump-era tax cuts. This could increase disposable income, particularly for wealthy individuals, but also widen the federal deficit.
Despite the uncertainty, Bitcoin is thriving. It reached a new all-time high. Gold also saw a strong performance,rising 0.94% to $3,313.5 per ounce.
Most top Dow Jones companies declined, except for Alphabet. Its stock rose 4% on Google’s new AI announcements. UnitedHealth, however, continues to struggle. A report revealed it tried to cut insurance payouts, leading to a 6% stock drop.
