Stock Market Update
12-Aug-25 14:30 ET
July U.S. budget deficit widens to $291 bln as spending outpaces record revenues
Dow +504.46
at 44479.55,
Nasdaq +274.71
at 21658.72,
S&P +68.42
at 6441.87
[BRIEFING.COM] The major averages held their higher lines following the release of the July Treasury Budget which hit at the bottom of the hour. Currently, the S&P 500 (+1.07%) is in last place, but about 68 points higher.
The Treasury Budget for June showed a deficit of $291.1 billion compared to a deficit of $243.7 billion in the same period a year ago. The July deficit resulted from outlays ($629.6 billion) exceeding receipts ($338.5 billion). The Treasury Budget data are not seasonally adjusted so the July deficit cannot be compared to the June surplus of $27.0 billion.
The key takeaway from the report is that federal spending outpaced revenue growth, even with a sharp increase in tariff collections from Trump's trade policies; for the fiscal year to date, both spending and receipts hit record highs, but outlays are rising faster, pushing the deficit higher.
