US stock market and dollar plunge following Trump tax bill
according to webangah News Agency, investor confidence has been fragile since last week when Moody’s downgraded the US credit rating, raising alarms over the country’s $36 trillion debt. Trump’s tax plan could add $3 to $5 trillion to this burden.
US stock futures fell nearly 1% during European trading hours on Wednesday as Trump struggled to secure Republican support for his bill,which cuts health and food benefits for low-income Americans and reduces government backing for clean energy programs.
Concerns also persist over stalled US trade negotiations with partners pressuring Washington to lower or eliminate tariffs. Meanwhile, Treasury yields remained elevated, with 30-year bonds hitting 5%. A critical auction of $16 billion in 20-year bonds—a benchmark for long-term debt demand—is scheduled for Wednesday.
european stocks retreated from recent highs, with the pan-European Stoxx 600 index dropping 0.5% as shares of major firms like JD Sports and Swiss bank Julius Baer declined. Investors flocked to safe-haven currencies like the yen and Swiss franc.
“People are considering capital flight from the US,” said Chris Weston, head of research at Pepperstone. “this isn’t a mass exodus yet, but opportunities in other markets are being reassessed.”
The dollar sell-off accelerated in Asia, pushing the yen, Swiss franc, and euro to their strongest levels in two weeks.
