How Wall Street is reacting to Trump's spending bill

Market Reaction to Potential Legislation - Markets have been slowly creeping higher, reaching record highs, as they assess the potential impact of the legislation, with the thinking that it could stoke economic growth [3] - Wall Street analysts seem to feel that if the bill passes, it could unlock a growth profile for America, potentially leading to higher markets [4] - The market may be positively influenced by the bill's potential to make the 2017 Trump tax cuts permanent, including a reduction of the corporate tax rate to 21% [9] Concerns Regarding Debt and Deficit - The potential impact of $3.3 trillion of debt over 10 years is a factor in market calculations, particularly concerning the bond market and US sovereign debt [5] - A significant surge in US debt interest rates hasn't been observed, suggesting that some investors are currently looking beyond deficit concerns [7] - The market is watching for "bond vigilantes" who might punish US sovereign debt due to deficit and debt management, but this hasn't happened yet [8] US-Vietnam Trade Agreement - President Trump announced a trade agreement with Vietnam, including a 20% tariff on Vietnam's imports and tariff-free access for the US to Vietnam's markets [10][15] - Vietnam has reportedly agreed to impose a 40% tariff on goods trans-shipped through Vietnam, potentially targeting goods from China [10][17] - The details of the agreement are still unclear, including potential nuances, exceptions for specific goods, and whether the agreement has been officially signed by both parties [18] - Analysts are awaiting details on non-tariff barriers and foreign exchange policies within the agreement [19][20] Geopolitical Implications - The trans-shipping clause in the US-Vietnam trade agreement could be seen as a jab at China, potentially impacting trade relations [21] - Beijing's reaction to the trans-shipping clause, which may throttle Chinese exports through Vietnam, is a key issue to watch [22]