CNBC Daily Open: U.S. market sell-off on deficit fears unlikely to be stemmed by any 'Trump put'
May 22, 2025 - cnbc.com
U.S. markets experienced a significant sell-off due to concerns over the country's fiscal health, with the S&P 500, Dow Jones, and Nasdaq all declining. Treasury yields spiked, driven by fears of increasing U.S. debt, potentially exacerbated by President Trump's proposed tax bill, which could add trillions to the debt. This situation has led to a credit rating downgrade from Moody's and further market instability. Meanwhile, Bitcoin reached a new high, and OpenAI acquired Jony Ive's AI devices startup, signaling a move into hardware.
In other developments, Nvidia's CEO criticized U.S. chip export controls, claiming they harm American businesses more than China. Etihad Airways expressed confidence in Boeing despite delivery delays. Emerging markets are gaining attention as the "sell U.S." narrative strengthens, fueled by a weaker U.S. dollar and improving U.S.-China trade relations, prompting upgrades from major financial institutions.
Key takeaways:
U.S. markets experienced a significant sell-off due to concerns over the country's fiscal health and rising Treasury yields.
Bitcoin reached a new high of $111,416, surpassing its previous record.
OpenAI acquired Jony Ive's AI devices startup io for $6.4 billion, marking its entry into hardware.
Emerging markets are gaining attention as the "sell U.S." narrative strengthens, following a U.S. credit rating downgrade by Moody's.
