Why 'Sell America' is trending on Wall Street

A wave of pessimism is sweeping Wall Street this week as investors question the US economy’s reliability and its standing in global markets. The phrase “Sell America” is trending among traders, reflecting a move away from U.S. assets, particularly long-term government bonds, favouring safer or more stable global options.

At the center of the concern: America’s growing national deficit, mounting debt costs, and rising political and economic uncertainty.

Treasury Yields Spike Amid Weak Demand

On Wednesday, the U.S. Treasury attempted to sell $20 billion worth of 20-year bonds — but the auction received weaker-than-expected demand. The government was forced to offer a higher yield of over 5%, signaling increased investor concern and reduced appetite for U.S. debt.

Yields on 30-year Treasuries also spiked above 5%, a rare and unsettling move. Rising yields mean higher interest costs for the U.S. government — and higher borrowing costs for consumers across the board, from mortgages to auto loans.

Credit Downgrade Adds Fuel to the Fire

These developments follow Moody’s recent downgrade of the United States’ credit rating, which cited the growing national deficit, now nearing $2 trillion. The agency also flagged concerns over President Trump’s new budget bill and tax extension plans, warning that these would worsen the long-term fiscal outlook by slashing revenue without cutting spending.

“We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration,” Moody’s wrote.

ECB, Analysts Warn of Tariff Risks

Adding to the volatility, the European Central Bank issued a rare warning this week, stating that Trump’s aggressive tariffs and unpredictable trade policies pose risks not just to the U.S., but to global financial stability.

“Frequent shifts and reversals in tariff policy, alongside significant changes in the geopolitical environment, could have major economic and financial impacts,” the ECB said.

The End of US Exceptionalism?

Winnie Cisar, Global Head of Strategy at CreditSights, says what’s happening now represents more than short-term selling.

“The ‘Sell America’ trade represents a whole change in narrative around U.S. economic exceptionalism,” she said, pointing to a shift in how global investors view the U.S. as a destination for capital.

According to Cisar, investors now believe the U.S. may no longer be the safe haven it once was.

The combination of soaring debt, rising yields, trade tensions, and political uncertainty is shaking the foundation of what many long considered the safest market in the world. As Wall Street increasingly questions U.S. creditworthiness and global leadership, the “Sell America” trend may just be getting started.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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