US stocks remained flat almost an hour after the opening bell, with Dow Jones Industrial Arage rising 13 points as investors looked at the latest developments surrounding President Donald Trump’s tax bill.
The Dow was able to reverse the futures loss seen earlier in the day, but the S&P 500 hovered just 0.06% on the green. Like the Benchmark S&P 500 and the Blue Chip Dow, the Nasdaq Composite recorded a very small profit, up 0.5% in the open.
Wall Street unrest followed a notable spike, driven by trade contract optimism, threatening to pull key indicators away from recent highs.
But new concerns about US-China tensions over semiconductor policy and the latest House vote seem to have pushed investors’ feelings into more negative territory.
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Investors have responded unfavourably to the House passing the bill focused on tax cuts and increased military spending.
There are concerns that the passage of Trump’s tax bill could further accelerate the US deficit.
Investors are worried that the current US deficit of $36 trillion could swell more than trillions of dollars. Just a few days ago, Moody downgraded the US credit rating.
This outlook brings the 30-year financial yield to 5.1%, the highest level since October 2023. Meanwhile, the 10-year Treasury bond yield has continued for nearly 4.6%.
Rising long-term interest rates, combined with broader macroeconomic pressures, could lead to stocks lower.
As stocks struggled, Bitcoin (BTC) surged to a new all-time high above $111K. Profits have also been seen in Altcoins such as Ethereum (ETH) notching upward action.
Elsewhere in the market, US unemployment claims fell slightly in the week that ended May 17th. Data on initial unemployment insurance claims showed a decline of 2,000, to 227,000, seasonally adjusted. This was just under the 230,000 estimate from the Dow Jones. Meanwhile, the four-week moving average of unemployment claims rose slightly to 231,500.
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