S&P 500 closes little changed Thursday as investors worry about high yields hitting economy
The S&P 500 ended Thursday near flat, as investors grappled with 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 Industrial Average slipped 1.35 points, closing at 41,859.09. The S&P 500 lost 0.04% and ended at 5,842.01, while the Nasdaq Composite advanced 0.28% and settled at 18,925.73.
In a party line vote early Thursday, House members approved the bill that includes lower taxes and additional military spending. The measure — 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.
The 30-year Treasury bond yield on Thursday traded at levels not seen since 2023, climbing as high as 5.161%, before retreating later in the session. The benchmark 10-year Treasury note yield also backed off its high of the day. The increase in long-term rates, which are benchmarks for consumer loans, could pressure an economy already feeling the weight of Trump’s recently implemented universal tariffs.
Source : CNBC
