Stock Market Update

[BRIEFING.COM] The Treasury Budget for February showed a deficit of $307.0 billion compared to a deficit of $296.3 billion in the same period a year ago. The February deficit resulted from outlays ($603.4 billion) exceeding receipts ($296.4 billion). The Treasury Budget data are not seasonally adjusted so the February deficit cannot be compared to the January deficit of $128.6 billion.

The key takeaway from the report is that the deficit in early fiscal 2025 is 38.5% greater than the deficit for the same period in fiscal 2024 with net interest outlays ($396 billion) nearly equal to outlays for national defense ($399 billion) and health ($399 billion).

Stocks and bonds had a muted response to the release. The S&P 500 is about 45 points higher and the 10-yr yield sits at 4.31%.