8 Feb 2018 2:48 pm
Luckily we have a guy who calls himself 'The King Of Debt' in the WH.Did Congress, Trump Just Crush The Stock Market Rebound?
Investors Business Daily - JED GRAHAM - 1:47 PM ET
Just about the last thing the stock market needed as it tries to recover from the Dow Jones industrial average's 4.6% plunge to start the week was a $300 billion deficit-boosting budget deal.
The Dow Jones industrial average, S&P 500 index and Nasdaq composite sold off sharply as the 10-year Treasury yield jumped all the way back to 2.88%, within a whisker of last week's four-year high.
By afternoon on the stock market today, the Dow sank 2.5%, the S&P 500 2.2% and the Nasdaq 2.4%.
The renewed weakness in stocks only dragged the 10-year Treasury yield moderately lower to 2.82%.
The S&P 500 and other major averages had already reversed lower Wednesday in part as the increased spending agreement took hold lifting yields.
The trading action makes it look as if the stock market isn't just climbing a wall of worry, it's climbing a wall of debt, and that wall just got steeper.
Already, Wall Street had been expecting $1 trillion in Treasury issuance in 2018, nearly double last year's total.
Now, the deal to boost spending on defense and domestic programs, while sending more money to hurricane-hit regions, could raise that total by $150 billion or more, with no letup in years to come.