Wall Street suffered steep losses on Wednesday as concerns over the ballooning US deficit and surging Treasury yields triggered a broad sell-off. The Dow Jones dropped 816 points (1.9%) to 41,860, while the S&P 500 and Nasdaq fell 1.6% and 1.4% respectively, ending their recent winning streaks. Yields on long-term US government bonds soared — with the 30-year surpassing 5.09% and the 10-year hitting 4.59% — after a weak 20-year bond auction and fresh doubts about America’s fiscal outlook. The moves reflect mounting investor anxiety over the cost of financing US debt, particularly as Congress battles over President Trump’s proposed “One Big Beautiful Bill Act.”
The 1,000-page bill aims to make the 2017 Trump tax cuts permanent and introduce sweeping new tax breaks, including income tax exemptions on tips, overtime, and some Social Security payments, while expanding deductions and credits. But the Congressional Budget Office estimates the bill would add US$3.8tn to the deficit over the next decade, with only US$1tn in offsetting cuts — mostly from Medicaid, SNAP, and green energy rollback. Millions stand to lose healthcare and food assistance, while high-income households would see gains of up to 4%. Internal Republican divisions have stalled progress, and the bill’s chances in the Senate remain uncertain. Amid warnings from Moody’s, the IMF, and investors like Ray Dalio, the market reaction underscores deepening fears that US fiscal dysfunction is driving up borrowing costs and threatening economic stability.
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Dexus secures injunction in dispute over APAC shareholding
Dexus (ASX\:DXS) has obtained an injunction from the New South Wales Supreme Court temporarily restoring governance, voting, and information rights to its Dexus Bloc Shareholders in Australia Pacific Airports Corporation (APAC), which had been suspended following a contested notice from APAC’s board. The injunction also prevents any finalisation of the shareholding’s valuation or forced sale while the dispute is ongoing. A full hearing is scheduled for 11–12 August 2025. In securing the injunction, Dexus agreed to pay damages to affected parties if its legal challenge ultimately fails. The company, which manages a A$53.4bn portfolio across real estate and infrastructure, will provide further updates as required.
