U.S. stocks ended mostly flat as Treasury yields slightly fell, easing some fears about rising interest rates. However, concerns remain about the impact of President Donald Trump’s tax bill on the national deficit.
The 30-year Treasury yield briefly rose above 5%, reaching its highest point since 2023, driven by worries over the growing government deficit. This came as Republicans pushed to pass a large tax bill, estimated by some analysts to add $3.8 trillion to the deficit.
The bill, called the “One, Big, Beautiful Bill,” passed the House and now moves to the Senate. Key changes to help pass the bill include raising the state and local tax (SALT) deduction cap from $10,000 to $40,000 and speeding up Medicaid work requirements to start in December 2026 instead of 2029.
Despite ongoing deficit concerns, Treasury yields eased from their highs, giving stocks some relief. Stocks usually rise when interest rates fall because borrowing costs become cheaper.
The Dow Jones Industrial Average was nearly unchanged, down just 1.35 points to 41,859.09. The S&P 500 slipped 0.04% to 5,842.01, while the Nasdaq gained 0.28% to 18,925.74. The 10-year Treasury yield dropped to 4.541%, and the 30-year yield fell to 5.051%.
Bitcoin hit a record high above $111,000. Meanwhile, oil prices declined after reports that OPEC+ members are considering a third consecutive increase in oil production in July, with a possible rise of 411,000 barrels per day.
Solar stocks fell sharply after the House passed a version of the tax bill that was worse than expected for the industry. The bill accelerates the expiration of energy credits and removes the tax credit for leased solar systems. First Solar shares dropped 4.3%, SunRun plunged 37%, and SolarEdge fell nearly 25%. An equity analyst described the bill as one of the most damaging versions seen for solar incentives.
In corporate news, Urban Outfitters beat earnings estimates, boosting its shares by nearly 23%. Zoom reported better-than-expected earnings but flat revenue, causing a slight dip in its stock. Ralph Lauren plans to raise prices due to tariffs, lifting its shares about 1%. Snowflake raised its sales outlook and beat estimates, with shares jumping about 13.5%.
AT&T agreed to buy Lumen Technologies’ fiber internet business, with mixed stock reactions. Walmart announced plans to cut 1,500 corporate jobs, leading to a small stock decline. Nike will sell products on Amazon’s U.S. site for the first time in over five years, pushing its stock up 2.3%. Advanced Auto Parts beat forecasts, sending shares soaring 57%.
Bitcoin’s rise is supported by growing institutional buying and corporate adoption. JPMorgan recently allowed clients to buy bitcoin, joining Morgan Stanley and other banks in offering access to the digital currency.
The tax bill now faces a tougher path in the Senate, where Republicans expect to make significant changes before approval. The legislation aims to deliver tax cuts and increased spending on defense and border security but also raises the federal debt significantly.
President Trump praised the bill as historic and urged quick Senate approval to finalize the package by July 4. However, some Senate Republicans have voiced the need for major revisions before supporting the bill.
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