Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.33%) is in second place on Tuesday afternoon following the release of the Treasury's December budget from the bottom of the hour.

The Treasury Budget for December showed a deficit of $144.7 billion compared to a deficit of $86.7 billion in the same period a year ago.

The December surplus resulted from outlays ($629.1 billion) exceeding receipts ($484.4 billion). The Treasury Budget data are not seasonally adjusted so the December deficit cannot be compared to the November deficit of $173.3 bln.

Overall, the December shortfall underscores that while tariff-driven gains in customs duties and higher individual tax receipts have bolstered federal revenues, rising outlays, particularly interest costs on the expanding public debt, continue to weigh on the fiscal picture. The data highlight the tension between improved revenue momentum and persistent spending pressures that markets are continuing to digest.