US stocks mixed Thursday as the market digested the narrow approval of President Trump’s large tax and spending package home.
The S&P 500 soaked 0.04%, the Dow Jones industrial average was flat, and the NASDAQ composite rose 0.28%.
The legislation, declared by the Congressional Budget Office to add about $4 trillion to the federal deficit, includes wiped out tax cuts and increased military spending.
It passed the House in one vote after a last-minute revision, including expanding state and local taxes aimed at shaking conservative lawmakers. The bill is currently heading to the Senate.
Another Treasury spike brings softened investors’ sentiment. The 30-year bonds shortly surpassed the highest level since 2023, 5.16%, before easing.
The benchmark 10-year yield also pulled back just to 4.55%.
Analysts said demand was weak at the 20-year bond auction on Wednesday, prompting previous sales at Treasurys, whilst concerns about debt sustainability remained alive.
“In the short term, tax bills are good for the economy,” said Jed Ellerbroek of Argent Capital. “But in the long run, it adds to the deficit, which is bad for the market.”
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Bitcoin continues to hit its highest ever high
Bitcoin (BTC) expanded its massive rally to trade over $111,000. It traded over $111,000 amid optimism about the Senate’s progress on stable regulations and forecasts surrounding Trump Donor events attended by key crypto holders.
Bitcoin rally sparked limited excitement among derivative traders compared to past bull runs. Analysts noted that demand in the spot market, not speculation, drives profits, and long/short ratios and liquidation show moderate bullish sentiment.
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