U.S. stocks were closed with mixed results on Thursday as the House’s narrow approval of President Trump’s extensive tax-and-spending package was being digested by the markets.
A slight decline of 0.04% was recorded by the S&P 500, while the Dow Jones Industrial Average ended the session unchanged, and a 0.28% gain was registered by the Nasdaq Composite.
The legislation, which is expected by the Congressional Budget Office to expand the federal deficit by nearly $4 trillion, has been drafted to include extensive tax reductions and a rise in military expenditures.
The bill was passed in the House by a narrow margin of one vote following last-minute amendments, which included broader deductions for state and local taxes intended to win over conservative legislators. It is now being sent to the Senate for further consideration.
Investor sentiment was tempered by another surge in Treasury yields, as the 30-year bond was briefly pushed above 5.16%—a peak not reached since 2023—before it was eased back down.
The benchmark 10-year yield was also slightly reduced, settling at 4.55%.
It was stated by analysts that the earlier sell-off in Treasurys had been fueled by weak demand observed at Wednesday’s 20-year bond auction, while ongoing concerns about debt sustainability were also noted.
It was stated by Jed Ellerbroek of Argent Capital that the tax bill would likely benefit the economy in the short term; however, concerns were expressed that its long-term effect on the deficit would negatively impact the markets.
Bitcoin Continues Setting New Record Highs
Bitcoin’s significant rally was extended as it was traded above $111,000, driven by optimism related to Senate advancements on stablecoin regulation and anticipation surrounding a donor event for Trump, which was expected to be attended by prominent crypto holders.
Limited enthusiasm was sparked among derivatives traders by Bitcoin’s rally, as noted by analysts who observed that the gains were driven by spot market demand rather than speculative activity. Moderate bullish sentiment was indicated by long/short ratios and liquidation data.
