Stocks end little changed as Treasury yields dip. Trump's big tax bill still in focus
U.S. stocks closed little changed as Treasury yields dipped slightly to ease interest rate concerns.
However, worries linger over how President Donald Trump's tax bill will affect the deficit.
Treasury yields had risen, with the 30-year bond yield piercing the key 5% level and hitting the highest level since 2023 amid government deficit worries as Republicans work on passing a giant tax bill that some analysts estimate could cost $3.8 trillion. The legislation dubbed the "One, Big, Beautiful Bill" passed the House and now goes to the Senate. Among the provisions included to jump that final hurdle: a state and local tax (SALT) deduction cap increased to $40,000 from $10,000 and Medicaid work requirements set to begin in December 2026 instead of 2029.
Though worries remain about the swelling deficit, Treasury yields eased off their highs giving stocks some breathing room again. Stocks tend to rise as interest rates fall because lower rates reduce the cost of borrowing.
The blue-chip Dow was basically unchanged, down 1.35 points, to 41,859.09; the broad S&P 500 dipped 0.04%, or 2.6 points, to 5,842.01; and the tech-heavy Nasdaq rose 0.28%, or 53.09 points, to 18,925.74. The benchmark 10-year Treasury yield dipped to 4.541%, and the 30-year bond yield slipped to 5.051%.
Bitcoin touched a record high above $111,000, and oil prices slid after Bloomberg said oil producing member countries, or OPEC+, are discussing a potential third consecutive oil production surge in July, with an output hike of 411,000 barrels a day among the options under consideration.
Tax bill smashes solar stocks
Solar stocks tumbled after the version of the tax bill the House passed Wednesday night was worse than expected.
Already, investors knew the tax bill would accelerate the expiration of energy credits that the Biden administration had enacted but the new bill was even worse for the industry. It also removed the tax credit for leased solar systems.
The "latest draft represents among the most restrictive interpretations we have heard speculated and the closest to 'complete' gutting of bill we've ever seen," Julien Dumoulin-Smith, equity analyst at Jefferies, said in a note to investors.
Shares of First Solar tumbled 4.3% while SunRun plunged 37% and SolarEdge slid almost 25%.
Corporate news
- Clothing retailer Urban Outfitters' quarterly results topped analysts' forecasts. Shares added almost 23%.
- Zoom posted better-than-forecast quarterly earnings, while revenue met expectations. Shares of the conferencing platform just dipped.
- Ralph Lauren said it plans to raise prices because of tariffs. Shares gained about 1%.
- Snowflake raised its full-year sales outlook for product revenue and sees its current quarter sales just above analysts' expectations. The data storage company's results in the first three months of the year also beat Street estimates. Shares jumped about 13.5%.
- AT&T agreed to acquire substantially all of Lumen Technologies' Mass Markets fiber internet connectivity business. Lumen shares ended fractionally higher and AT&T stock dipped.
- Walmart plans to cut 1,500 corporate jobs. Its shares dipped slightly.
- Nike plans to sell its products on Amazon's U.S. site for the first time in more than five years. Nike stock rose 2.3%.
- Advanced Auto Parts reported results from the first three months of the year that beat analysts' forecasts. Shares soared 57%.
Cryptocurrency
Bitcoin continued its slow climb, last up 1.29% at $111,097.30. The rally has been powered by more institutional buying and corporate adoption of the digital asset.
Earlier this week, JPMorgan chief executive Jamie Dimon said bank clients can now buy bitcoin. Other major banks like Morgan Stanley already allow eligible clients to invest in bitcoin.
This story was updated with new information.
Medora Lee is a money, markets, and personal finance reporter at Paste BN. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.