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Stocks were trading little changed Thursday, as investors tried to shake off fears of rising rates and worries about a ballooning U.S. deficit.
The 30-year Treasury yield hit its highest since October 2023 as lawmakers passed a bill that investors fear could worsen the U.S. deficit.
The Dow Jones Industrials gained 39.04 points to 41,899.48.
The S&P 500 edged up 6.94 points to 5,851.55
The NASDAQ Composite recovered 111.54 points to 18,984.18.
In a party line vote early Thursday, House members approved the bill that includes lower taxes and additional military spending. The bill — which now goes to the Senate — could increase the U.S. government’s debt by trillions and raise the deficit at a time when fears of a flare-up in inflation due to Trump tariffs are already weighing on bond prices and boosting yields. The Congressional Budget Office puts the price tag for bill at nearly $4 trillion.
Long-dated bonds sold off as traders worried a new budget bill would worsen the U.S. deficit. The measure is expected to pass as lawmakers reach a compromise on state and local tax deductions heading into Speaker Mike Johnson’s Memorial Day deadline. Yields spiked even higher after a poor afternoon auction for 20-year debt, raising fears investors may be losing their appetite for funding America’s deficits.
Target shares dropped 5.2% after the big box retailer cut its full-year sales outlook, with executives citing tariff uncertainty and a backlash to the company’s pullback in diversity, equity and inclusion efforts.
Prices for the 10-year Treasury were higher by noon EDT Thursday, lowering yields to 4.56% from Wednesday’s 4.6%. Treasury prices and yields move in opposite directions.
Oil prices lurched lower 86 cents to $60.71 U.S. a barrel.
Prices for gold faded $20.90 to $3,292.60.
