Wall Street ended Thursday on an uncertain note, with the S&P 500 closing virtually unchanged as investors weighed the economic fallout from a controversial Republican tax and spending bill that cleared the House earlier in the day.
The benchmark index dipped just 0.04% to close at 5,842.01. The Dow Jones Industrial Average inched lower by a single point to 41,859.09, while the tech-heavy Nasdaq bucked the trend, gaining 0.28% to finish at 18,925.73.
The muted performance followed a turbulent week in the bond market, where long-term yields surged to multi-year highs on fears that ballooning U.S. deficits could destabilise the economy.
Deficit concerns weigh on sentiment
Markets remain fixated on the US government’s fiscal trajectory after the House passed President Trump’s so-called “One Big Beautiful Bill” — a sweeping package that permanently extends Trump-era tax cuts, introduces new tax breaks, and significantly boosts defence and immigration enforcement spending.
According to the Congressional Budget Office, the measure could add nearly US$4 trillion to the national debt over the next decade. Those concerns were reflected in the bond market, where the 30-year Treasury yield climbed as high as 5.161% — its highest since 2023 — before easing later in the session. The 10-year yield also flirted with multi-year highs before retreating.
The spike in yields reflects both inflationary fears and weakening demand for long-dated government debt. A lacklustre auction of 20-year Treasurys on Wednesday only deepened investor unease, further pressuring equities, especially rate-sensitive sectors.
As the bill heads to the Senate, market attention will shift to how much of the House version survives the reconciliation process.
Commodities and the dollar
Brent crude is trading 1.29% lower at US$64.07 a barrel.
WTI crude is trading 0.6% lower at US$61.20 a barrel.
Spot gold is trading 0.01% lower at US$3294.30 an ounce.
Gold futures (COMEX) are trading 0.55% lower at US$3323.60 an ounce.
One Australian dollar is buying 64.10 US cents.
Futures
The SPI futures are point to a 22 point rise.
