Market Rebounds as Treasury Yields Decline After Tax Bill Passage
U.S. stocks rose after the House passed President Trump's tax and spending bill, easing initial declines. Treasury yields fell, boosting stock indices. The bill adds $3.8 trillion to the U.S. debt but fulfills campaign pledges. Markets are tense over tariffs and interest rates, affecting diverse sectors.
U.S. stock markets witnessed a recovery on Thursday, overturning earlier losses, as Treasury yields retreated from their peak levels. This positive shift followed the House of Representatives' approval of President Donald Trump's tax and spending bill.
The bill, which is set to increase the federal deficit, initially pressured stock prices but the drop in long-term Treasury yields offered a respite. The yield on the benchmark 10-year note dipped by 5 basis points to 4.547%, easing concerns after reaching its highest since February.
All major stock indices experienced gains despite volatile sessions. This comes after significant dips seen on Wednesday due to fears surrounding the U.S. debt scenario. The narrowly passed bill is poised to inflate national debt by $3.8 trillion over the next decade, per the Congressional Budget Office.
(With inputs from agencies.)
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