The other half of the equation is what the government is spending the borrowed money on. The effect on the real economy is significant and pertinent to market performance of sectors.

The Keynesian debt theory, the government should run up debt and support the economy during recessions, and then repay that debt quickly during periods of growth. This is not what is happening.

Repaying the interest on debt held by a Norwegian pension fund has only a very minor impact on the US real economy.