
✎ Contributed by Ty Griffin
The U.S. House of Representatives narrowly passed a budget resolution Wednesday, setting the stage for President Donald Trump’s proposed $5 trillion in tax cuts and increased federal spending. While the legislative move represents a win for the White House, markets have responded with a sharp sell-off, reflecting investor concerns over inflation, fiscal imbalance, and ongoing tariff escalation.
Performance of Major Indices
- S&P 500 Index: Trading at 5,184.29, down 5.53% today.
- Dow Jones Industrial Average: Trading at 39,016.29, down 3.92% today.
- Nasdaq Composite Index: Trading at 16,131.68, down 5.80% today.
Market Context
The sell-off continues a volatile stretch for equities, following a brief rally tied to the administration’s 90-day suspension of most tariffs. That pause excluded China, which is now facing a 125% tariff rate on all exports to the U.S., triggering a fresh round of global trade tensions and fears of retaliatory measures.
Outlook
With inflation readings due later this week and the first wave of Q1 earnings kicking off shortly, investors are recalibrating risk. The size and speed of today’s losses underscore market skepticism toward policy unpredictability and concern that fiscal stimulus may not offset the economic drag of a deepening trade war.
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