Financial markets took a nosedive Wednesday after House Republicans squeezed through Trump’s massive tax overhaul with a razor-thin 215-214 vote. The Dow plummeted 817 points while the S&P 500 and Nasdaq stumbled, spooked by CBO projections of a $4 trillion addition to national debt. Bitcoin, meanwhile, smirked its way past $111,000. With Senate modifications ahead and a July 4th deadline looming, this financial rollercoaster is just getting started.
While House Republicans narrowly muscled through Trump’s massive tax overhaul bill on Wednesday, markets threw a tantrum that sent the Dow plunging 817 points.
The “One Big Beautiful Bill Act” – yes, that’s its actual name – squeaked by with a nail-biting 215-214 vote after an all-night session that had lawmakers chugging coffee and trading barbs. Only two House Republicans dared to break ranks, with Kentucky’s Thomas Massie and Ohio’s Warren Davidson giving the legislation a firm thumbs down.
The legislation quickly made waves with its sweeping changes, including Medicaid work requirements starting in 2026.
Wall Street wasn’t impressed. The S&P 500 tumbled 1.61%, while the Nasdaq dropped 1.41% in its worst showing in a month. Traders, already jittery about Moody’s recent credit downgrade, took one look at the Congressional Budget Office’s projections and hit the sell button. Hard. Like an IndiGo flight that recently encountered severe turbulence, the markets struggled to maintain stability. Seasoned investors rushed to implement defensive investments strategies to protect their portfolios from further volatility.
And those projections? They’re enough to make any deficit hawk cry. The CBO estimates the bill will pile nearly $4 trillion onto the national debt over the next decade. For those keeping score at home, that could push America’s IOUs from $36 trillion to a mind-boggling $56 trillion.
The CBO’s latest bombshell: America’s debt could skyrocket $4 trillion, pushing our national tab to a staggering $56 trillion.
While the markets were having their meltdown, Bitcoin decided to crash the party – in the opposite direction. The cryptocurrency surged past $111,000, hitting an all-time high as investors apparently decided digital gold looked better than Uncle Sam’s promises.
Speaker Mike Johnson, racing to meet his self-imposed Memorial Day deadline, cobbled together what insiders called a “very delicate balance” to get the votes. Even Trump himself had to step in, twisting arms to get reluctant Republicans on board.
The drama’s not over yet. The bill now heads to the Senate, where Majority Leader John Thune has already warned the upper chamber will “have its imprint” on the legislation.
Markets showed signs of settling the next day, with futures inching up cautiously – Dow futures up 0.10%, S&P 500 futures rising 0.16%, and Nasdaq futures gaining 0.24%.
But with a July 4th deadline looming, this roller coaster ride is far from over.
