Core Viewpoint - The total U.S. national debt has surpassed $38 trillion for the first time, reflecting ongoing fiscal challenges exacerbated by government shutdowns [1][2]. Group 1: Debt Growth and Economic Impact - The U.S. government's debt has been rising due to continuous shutdowns, leading to significant disruptions in economic activities and the interruption of salaries for hundreds of thousands of federal employees [2]. - The Congressional Budget Office reported that the 2013 government shutdown resulted in losses amounting to $2 billion, highlighting the financial repercussions of such events [2]. - The Peter G. Peterson Foundation projects that interest payments on U.S. debt will surge to $14 trillion over the next decade, a significant increase from $4 trillion in the past ten years, which will heavily impact public and private spending in critical economic sectors [2]. Group 2: Credit Rating Concerns - Moody's downgraded the U.S. sovereign credit rating from the highest Aaa to Aa1 in May, reflecting investor concerns regarding the growing national debt [2].

Market Overview - US stock market experienced a significant decline, with the Dow Jones dropping 816.80 points (1.91%) to 41860.44 points, the Nasdaq falling 1.41% to 18872.64 points, and the S&P 500 decreasing 1.61% to 5844.61 points, marking the largest drop in nearly a month [1] - Concerns over the potential increase in US government debt by trillions of dollars due to President Trump's proposed tax cuts have led to rising Treasury yields, with the 30-year bond yield reaching 5.09% and the 10-year yield climbing 11.5 basis points to 4.59% [1][2] Tax Proposal and Economic Impact - The House Rules Committee is addressing internal divisions among Republicans regarding cuts to Medicaid and high-cost state tax deductions, while investors are closely monitoring the progress of Trump's tax proposal and its implications for the federal budget deficit [2] - Moody's downgrade of the US credit rating highlighted the risks associated with the proposed tax cuts, which could increase federal debt by $3 trillion to $5 trillion [2] - Cleveland Fed President remarked that the tax proposal complicates economic forecasts, especially if inflation and unemployment rise simultaneously, suggesting a cautious approach to monetary policy [2] Individual Stock Performance - Major tech stocks saw declines, with Apple down 2.3%, Nvidia down 1.9%, Amazon down 1.4%, and Microsoft down 1.2%, while Netflix rose 0.2% and Google increased by 2.8% [3] - UnitedHealth dropped 5.1% following reports of secret payments to nursing homes to reduce patient transfers, leading HSBC to downgrade its rating [3] - Retailer Target fell 5.2% due to concerns over reduced discretionary spending, prompting a significant downward revision of its annual outlook [4] - Nike's stock declined over 4% after announcing price increases on certain products starting in June [5] Commodity Market - The Nasdaq Golden Dragon Index fell 0.6%, while international oil prices decreased, with WTI crude oil down 0.74% to $61.57 per barrel and Brent crude down 0.72% to $64.91 per barrel [6] - Safe-haven demand pushed gold prices higher, with COMEX gold futures for May delivery rising 0.88% to $3309.30 per ounce [6]