U.S. Fiscal Outlook Concerns as Yields Spike and Dollar Rebounds
Thirty-year U.S. yields hit a 19-month high, then eased amid fiscal concerns. The House passed Trump's tax bill, raising debt worries. Stocks rose, driven by tech. The dollar strengthened, and oil prices fell on potential OPEC+ production increases. Bitcoin reached an all-time high as investors looked for alternatives.

In a volatile day for financial markets, thirty-year U.S. yields reached their highest levels in 19 months before pulling back slightly, reflecting ongoing unease over the country's fiscal outlook. Meanwhile, Wall Street stocks saw gains led by tech-related shares, and the U.S. dollar regained strength after recent losses.
Adding to the market dynamics was the narrow passage of President Donald Trump's tax bill by the House of Representatives, intensifying concerns about the nation's debt burden. The tax changes include breaks for tips and car loans and increased military and border spending. This fiscal shift led Moody's to join other major credit rating agencies in downgrading the U.S. from its triple-A status.
The broader market saw mixed reactions; while U.S. stocks climbed, European indices, like the STOXX 600, declined. Global demand for U.S. debt appeared weaker, with a soft $16 billion 20-year bond sale on Wednesday. Elsewhere, Bitcoin hit a new all-time high as investors explored alternatives, while reports of possible OPEC+ production hikes pressured oil prices down.
(With inputs from agencies.)