U.S. Margin Debt Hits Record High as Leverage Fuels Market Rally
U.S. margin debt surged to an unprecedented $1.02 trillion, with June's $87 billion spike marking the largest monthly increase on record. Over the past two years, borrowing has climbed by $400 billion—a 67% surge outpacing equity market growth. While inflation-adjusted figures remain slightly below October 2021's peak, margin debt as a percentage of GDP now exceeds all historical highs except that same 2021 level, signaling a stock market buoyed by Leveraged speculation.
Meanwhile, S&P Global maintained its AA+ U.S. credit rating, citing economic resilience and dollar dominance despite fiscal uncertainties. Analysts noted robust tariff revenues may offset potential 'fiscal slippage' from tax cuts and spending increases—a veiled reference to Trump-era policies.
