U.S. Stocks React to Tax Bill Approval
U.S. stocks finished mixed on Thursday. The S&P 500 fell slightly, the Dow Jones Industrial Average stayed flat, and the Nasdaq Composite rose modestly. This came as the House narrowly approved President Trump’s tax-and-spending package.
The bill, expected to increase the federal deficit by nearly $4 trillion, includes major tax cuts and higher military spending. It passed the House by a single vote, with last-minute changes to appeal to conservative lawmakers. The bill now moves to the senate.
Treasury yields spiked,affecting investor sentiment. The 30-year bond briefly hit 5.16%, its highest as 2023. The 10-year yield also saw a slight dip to 4.55%. Analysts say weak demand at a recent bond auction and debt sustainability concerns fueled these moves.
Argent Capital’s Jed Ellerbroek noted, “The tax bill is good for the economy in the short term. However, it adds to the deficit, which is bad for markets in the long run.”
Bitcoin Reaches New Heights
Bitcoin (BTC) continues its impressive rally, trading above $111,000. This surge is fueled by optimism about Senate progress on stablecoin regulation and a Trump donor event attended by major crypto holders.
Unlike past bull runs, this rally has seen limited excitement among derivatives traders. Analysts say the gains are driven by spot market demand, not speculation. Moderate bullish sentiment is indicated by long/short ratios and liquidations.
