Stocks just hit a speed bump. After rallying hard off April lows, the S&P 500 (SPY, Financial) slipped 0.52% by 10.54pm as the mood turned cautious across Wall Street. Investors are digesting a messy mix of political wrangling in Washington, fresh warnings about America’s growing debt load, and a spike in long-term Treasury yields. The 30-year yield crossed 5%, unsettling risk appetite. Meanwhile, reports that Israel may be gearing up for a strike on Iran pushed oil prices higher and added a new layer of geopolitical risk. Market nerves briefly calmed when word spread that the EU could offer a fresh trade proposal to the U.S.—but it wasn’t enough to stop the selloff.
The budget drama in D.C. is heating up. Republicans are scrambling to finalize a revised version of Trump’s economic bill, with a SALT cap boost to $40,000 at the center of the negotiations. That tweak might unlock a House vote, but it’s also reigniting conservative pushback demanding deeper spending cuts. Moody’s recent credit downgrade served as a reminder: the U.S. isn’t immune to debt stress. Former Treasury Secretary Steven Mnuchin didn’t hold back, calling the deficit more worrisome than the trade imbalance and pushing for urgent fiscal repair. The 10-year yield jumped to 4.53%, while the dollar softened as bond markets recalibrated.
Corporate stories added more texture to the tape. UnitedHealth (UNH, Financial) dropped after reports of controversial incentives for nursing homes. Take-Two (TTWO, Financial) is tapping investors for $1 billion. Lowe’s held up surprisingly well despite weak consumer sentiment, while Boeing (BA, Financial) hinted that 737 jet production could be stabilizing. Nvidia’s (NVDA) Jensen Huang slammed current AI chip export rules, warning they might hand the market to China. Tesla (TSLA, Financial) traded steady amid the broader slide. Elsewhere, Moderna (MRNA, Financial) pulled its flu-Covid combo shot application, and Phillips 66 (PSX, Financial) shareholders backed activist nominees in a rare U.S. proxy win for Elliott. Bottom line? Macro worries are rising, but stock-specific moves are still creating opportunities—if you know where to look.