Wall Street Rebounds on Progress of Trump’s Fiscal Plan, Closes Flat
The Nasdaq ended with modest gains, powered by the so-called “Magnificent Seven” tech giants. Tesla shares rose 1.92%.
Quick overview
- Wall Street's main indexes closed with minor changes after early losses due to the House's approval of Trump's tax and spending bill.
- The Dow ended flat, the S&P 500 dipped slightly, while the Nasdaq rose, bolstered by gains in major tech companies like Tesla and Alphabet.
- Investor concerns about the fiscal reform plan have led to increased Treasury yields, although long-term yields eased on Thursday.
- Initial jobless claims fell, indicating continued strength in the U.S. labor market, while the Dow showed mixed performance among its components.
Wall Street’s three main indexes closed Thursday’s session with marginal changes, as markets pared early losses triggered by the House of Representatives’ approval of President Donald Trump’s controversial tax and spending bill.
The Dow Jones Industrial Average, composed of 30 major companies, ended flat at 41,859.09 points. The S&P 500, which tracks the most valuable U.S. firms, dipped 0.04% to 5,842.01 points. The tech-heavy Nasdaq Composite rose 0.28% to 18,925.73, supported by gains in major tech names like Tesla and Alphabet.
Market Jitters Persist Amid Fiscal Concerns
Investors remain uneasy about the fiscal reform plan, which has now moved to the Senate for review. The proposal, aimed at cutting taxes and increasing government spending, has sparked concerns about ballooning federal debt.
Those concerns have driven up Treasury yields in recent weeks, putting pressure on equities. However, long-term yields eased on Thursday, helping stocks rebound. The 10-year Treasury yield fell by 5.4 basis points to 4.543%, retreating from its highest level since February.
Labor Market Remains Resilient
On the economic front, new data showed that initial jobless claims in the U.S. fell by 2,000 last week to 227,000 — signaling continued strength in the labor market and steady employment growth in May.
Mixed Performance Across Dow Components
The Dow Jones showed a balance between gainers and losers. UnitedHealth Group led the losses with a 2.08% drop, followed by Verizon, down 1.42%. On the upside, Nike gained 2.18%, and Merck & Co. rose 1.12%.
Tech Giants Boost Nasdaq
The Nasdaq ended with modest gains, powered by the so-called “Magnificent Seven” tech giants. Tesla shares rose 1.92%, while Alphabet, the parent company of Google, climbed 1.35% to its highest level in nearly three months.
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