Global markets are experiencing volatility due to President Trump's trade war and a potential $3.3 trillion increase to the US deficit over the next decade. A Republican spending bill faces an uncertain House vote this week, causing investors to worry about fiscal risk. Moody's recent downgrade of America's credit rating fueled a sell-off in Treasury bonds, although markets saw some stabilization on Tuesday. Analysts note foreign investors are reducing their holdings of US assets, a trend accelerating as the vote nears.

Prepared by Christopher Adams and reviewed by editorial team.