Mike Larson | Editor-in-Chief
The good news? We’re all in this together. The bad news? I’m talking about the government DEBT boat!
Take a look at the MoneyShow Chart of the Day, which shows net debt in relation to advanced economy GDP (courtesy of the Wall Street Journal). You can see that government debt in the US, Japan, the eurozone, and other major countries and economic regions continues to spiral higher relative to economic output.
Source: Wall Street Journal
For a long time, pundits talked about the rising debt threat…but markets didn’t much care. More recently, we’ve seen evidence that investors are getting nervous. Long-term bond prices have been falling at home and abroad, sending yields to multi-year (and multi-decade!) highs.
What’s the impact on YOU? You’ll lose money if debt fears rise and you own long-term bonds or ETFs that invest in them. The iShares 20+ Year Treasury Bond ETF (TLT) is down 3.6% in the past month.
If you own rate-sensitive stocks, you’ll take some hits, too. The REIT-loaded State Street Real Estate Select Sector SPDR ETF (XLRE) shed 1.6% in the past month, while the State Street SPDR S&P Homebuilders ETF (XHB) tanked 10.1%.
But it’s tech I’d keep a very close eye on. Growth stocks are sensitive to the level of rates, too – even as some investors think it’s all about AI hype and headlines.
We STARTED to see tech names take on water at the end of last week. If yields keep rising, that trickle of selling could turn into a short-term flood.
Mat Cashman is principal for investor education at the OCC/Options Industry Council. Kevin Davitt is head of index options content at Nasdaq. In this joint session from our April 2026 MoneyShow Virtual Expo, they cover the key structural differences between American-style and European-style options.
They also explain how exercise and assignment risk manifests in equity and ETF options, why expiration mechanics matter in short-duration trading environments, and what you need to know about the role of settlement timing, after-hours price movement, and operational risk.
Last week, the S&P 500 Index (^SPX) hit an all-time high, led by mega-caps, which are heavily weighted in the index. But the technical picture shows market internals weakening. That makes sense given the strong run-up since March, writes Bonnie Gortler, CEO of BonnieGortler.com.
The broad market indexes have surged since the April lows, driven largely by a handful of technology and AI stocks. Among the leaders is Nvidia Corp. (NVDA), climbing nearly 40% from the April lows. Here’s what traders should watch ahead of its earnings, says Lance Roberts, editor of the Bull Bear Report.
⛹♀️📈 Zscaler Stock Rebounds Off Lows as Traders Position Ahead of May 26. (Barchart)
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