Stocks in the US closed mostly flat on Thursday as investors weighed the impact of President Trump’s newly passed tax-and-spending bill against rising concerns over the ballooning US deficit.
The S&P 500 and the Dow finished marginally lower, while the Nasdaq added 0.3%.
Wall Street remained cautious, with the bill — featuring tax cuts and increased defense spending — now headed to the Senate and potentially adding trillions to the $36 trillion national debt.
The Congressional Budget Office pegs the cost at nearly $4 trillion, stoking fears of fiscal instability.
Bond markets reflected that anxiety, as the 30-year Treasury yield briefly touched 5.14%, its highest since 2023.
Solar stocks like Sunrun (-37%) plunged, dragging energy and utilities lower, while communication services outperformed.
Despite volatility, S&P Global’s composite PMI rose to 52.1 in May, showing signs of resilience, though housing and labor data sent mixed signals.