🤔 Why Is the Market Falling After the Senate Passed Trump’s “Big Beautiful Bill”? 📉🇺🇸

🧭 Why is the market dipping despite the Senate’s passage of Trump’s “Big Beautiful Bill”?

1. Worries about exploding deficits & debt

According to the Congressional Budget Office (CBO), the bill is expected to increase the federal deficit by around $2.8–3.3 trillion over the next decade. Markets are concerned that such large debt issuance could crowd out private investment and stall long-term economic growth.

2. Rising interest rates and borrowing costs

To fund the deficit, the Treasury will need to issue more bonds—this pressure pushes yields higher, which is negative for equity valuations.

3. Uncertainty and political backlash

Despite Senate passage (51–50), the bill still faces a tough path in the House — divided Republicans, moderate defections, and Democratic opposition put its timeline in doubt. Investors dislike unpredictability, especially when tied to budget/border-policy friction.

4. Cuts to social programs = consumer headwinds

Proposals include steep cuts to Medicaid, SNAP, and green energy subsidies—programs supporting low- and middle-income Americans. The concern? Reduced household spending power, which could weigh on consumer-driven sectors.

5. Policy-overhang on growth sectors

The bill scales back clean-energy tax credits and ends EV incentives—negatively affecting renewable and electric vehicle industries.

🚦 Bottom line

Even with the Senate’s approval of the "Big Beautiful Bill," markets are reacting negatively because the legislation:

□Increases long-term debt sharply

□Pushes bond yields higher, reducing equity appeal

□Threatens consumer spending via social program cuts

□Introduces uncertainty around legislative finality

Tackles growth-oriented sectors like green energy

⚠️ Together, these factors make today a cautious day for investors—hence the broad market dip.#TrumpBill #legislacion

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