Stocks Stabilize as Treasury Yields Slip Following Tax Bill Passage

U.S. stocks saw little movement on Thursday, recovering from initial losses as Treasury yields fell from recent peaks after the House of Representatives approved U.S. President Donald Trump's tax and spending plan. Initial fears over the U.S. deficit had raised Treasury yields, putting pressure on stocks, though longer-term yields eased on Thursday, offering some respite to the market.

The yield on the benchmark U.S. 10-year Treasury note dropped by 5.4 basis points to 4.543%, following its highest point since February. The Republican-controlled House passed the bill by a narrow margin, fulfilling several of Trump's campaign promises but projected to increase the national debt by $3.8 trillion over ten years, as per the Congressional Budget Office.

Investors are analyzing the implications of Trump's tariffs on U.S. imports, particularly their impact on consumer prices. George Young, a partner and portfolio manager at Villere & Co, remarked, "Today's issue was the tax bill's passage, but broader questions remain regarding tariffs and interest rates." Preliminary data showed the S&P 500 dropping by 4.89 points to 5,839.72, the Nasdaq Composite gaining 45.56 points to 18,923.23, and the Dow Jones Industrial Average decreasing by 11.37 points to 41,849.07.

(With inputs from agencies.)