U.S. Debt Nears $40 Trillion, Stocks Face Pressure Amid Rising Yields

The total outstanding U.S. federal government debt is approaching $40 trillion, putting pressure on the stock market and bond yields.

Rising Treasury yields are making bonds more attractive to investors, particularly pension funds and long-term investors, which could divert capital from stocks into bonds.

Gold and Bitcoin may benefit as investors increase allocations to alternative and safe-haven assets due to rising U.S. government debt and increasing refinancing pressures.