US National Debt Nears $40 Trillion as Home Depot Earnings Bounce Back
The US national debt is rapidly approaching $40 trillion, sparking concern among smart money investors. Despite rising interest rates and growing debt globally, stock markets have shown resilience, with the tech sector experiencing a recent surge in momentum stocks.
Home Depot's earnings report exceeded expectations, with the company reporting EPS of $4.92 versus consensus estimates of $4.73. The retail giant also guided FY27 earnings to be between $14.69 and $15.28, surpassing analyst projections. However, rising interest rates continue to affect housing markets, with recent data showing a decline in housing starts.
Investors are closely watching the trendline on Home Depot's stock chart, which has been in a downtrend due to persistently high interest rates. A break above this trendline could be a positive signal for the entire market. On the other hand, if the rally fails, it may indicate weakness.
The global economy is also facing rising debt levels and concerns over oil prices due to the stalemate between the US and Iran. The 10-year Treasury yield has risen to 4.736%, while the 30-year yield has reached its highest level since 2007 at 5.315%.