An El País editorial contends that the ongoing US stock‑market rally is mainly attributable to high levels of government spending, which it calls a ‘large‑deficit model’. If market gains depend on fiscal stimulus rather than fundamentals, any shift in US budget policy could trigger rapid equity corrections and affect global capital flows. US federal budget authorities, equity investors, analysts covering fiscal‑monetary interactions, and Spanish economic commentators. Market participants will watch upcoming US debt‑ceiling negotiations and Federal Reserve signals for signs of fiscal tightening that could test the sustainability of the rally. The opinion piece argues that the current US equity rally is primarily driven by expansive federal spending rather than corporate earnings, highlighting a reliance on fiscal stimulus to sustain asset prices. It warns that such a “large‑deficit model” may create vulnerability if budgetary tightening or debt‑ceiling debates emerge. The analysis remains descriptive, noting the mechanism without prescribing policy advice.
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