The S&P 500 Index ($SPX) (SPY) Thursday closed down -0.04%, the Dow Jones Industrials Index ($DOWI) (DIA) closed unchanged, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.15%. June E-mini S&P futures (ESM25) are down -0.05%, and June E-mini Nasdaq futures (NQM25) are up +0.12%.
Stock indexes on Thursday recovered from early losses and settled mixed, with the S&P 500 and Dow Jones Industrials posting 1-1/2 week lows. Stocks were under pressure Thursday when bond yields rose after President Trump's tax and spending bill passed the House Thursday morning, which would avert a year-end tax increase at the expense of adding to the US deficit. The bill now heads to the Senate, where some groups of Republicans are pressing for extensive changes. Lawmakers are expected to vote on the bill's approval by August. Concerns remain that the tax bill could add trillions of dollars to an already bulging deficit at a time when investors' appetite for US assets is waning. Stocks and the dollar have been under pressure this week due to the reduced attractiveness of US assets to foreign investors with the ongoing trade war, last Friday's Moody downgrade of the US credit rating, and the negative US budget deficit outlook in the Republicans' reconciliation bill.
