US national debt skyrocketing

Market Overview
Read time 0.9 minutes

Year To Date Performances:

1. In just a quarter since the debt ceiling standoff, the U.S. has heaped a whopping $3 trillion onto its national debt, while federal spending ballooned by 50% between 2019 and 2021. But here's the real kicker: as interest rates rise, the cost to service this colossal debt skyrockets, propelling debt service costs to their loftiest since 2009. Meanwhile, as the faucet of federal tax revenue slowed by 8.4% over the past year, the deficit widened by $300 billion. Simply put, dwindling revenues plus surging costs could be a cocktail for economic turmoil.

2. Housing starts in the U.S. took a sharp 11.3% nosedive last month, plummeting to a paltry 1.28 million units, levels not seen since 2020. Meanwhile, new build applications are down 2.5% YoY, signalling stormy skies ahead. Already grappling with limited listings, homeowners are wary of the sting of soaring mortgage rates, which have rocketed from 3.9% to over 7%. This has squeezed housing affordability and throttled mortgage applications back to mid-90s numbers. While new construction was once seen as our housing saviour, that hope seems to be cracking under pressure.

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4. Headlines

   1. Instacart had a great IPO, finishing the day up 12%.

   2. Amazon is planning to hire 250,000 seasonal workers for the holiday season.

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