NEW YORK, New York - U.S. stocks had a volatile day on Thursday after the House of Representatives narrowly passed President Donald Trump's 'Big Beautiful Bill," which will implemnent wide-ranging tax cuts and add $3.8 trillion to the nation'a national debt.
"This is arguably the most significant piece of Legislation that will ever be signed in the History of our Country!" Trump posted on Truth Social.
Speaker Mike Johnson, credited with getting the bill over the line by a single vote added: "The House has passed generational, truly nation-shaping legislation."
For investors and traders however it was another dustraction in the day's trading.
"The problem today was the tax bill, which appears to have passed," George Young, partner and portfolio manager at Villere & Co in New Orleans told CNBC Thursday. "But we are thinking about bigger potential problems and the two main things on the table are tariffs and interest rates."
The Nasdaq Composite ended with modest gains while the S&P 500 and Dow Jones Industrial Average finished slightly lower in subdued trading.
Key Index Performances
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Standard and Poor's 500 (^GSPC): The broad-market benchmark dipped 2.60 points, or 0.04 percent, closing at 5,842.01. Trading volume reached 2.761 billion shares.
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Dow Jones Industrial Average (^DJI): The blue-chip index slipped just 1.35 points, or 0.00 percent, ending at 41,859.09, with 471.072 million shares traded.
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Nasdaq Composite (^IXIC): Outperforming its peers, the tech-heavy Nasdaq gained 53.09 points, or 0.28 percent, settling at 18,925.73. Volume was heavy at 7.15 billion shares.
Market Drivers
Investors appeared cautious ahead of key economic data, including Friday's PCE inflation report—the Federal Reserve's preferred inflation gauge—which could influence interest rate expectations.
The Nasdaq's minimal outperformance was fueled by strength in big tech stocks, while the Dow and S&P 500 saw minor declines amid mixed sector performance. Energy and financial stocks weighed on the markets, while consumer discretionary and tech sectors provided support.
Looking Ahead
Traders will closely monitor Friday's inflation data for clues on the Fed's next policy moves. Any surprises could spark more volatility as markets assess whether the central bank will cut rates later this year.
Dollar Strengthens Against Euro and Commodity Currencies in Thursday Trading
The US dollar showed mixed performance in foreign exchange markets on Thursday, gaining ground against the euro and commodity-linked currencies while easing slightly against the British pound and Japanese yen.
Key Currency Movements
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EUR/USD: The euro fell 0.40 percent against the dollar, trading at 1.1283, as European economic concerns weighed on sentiment.
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USD/JPY: The greenback edged up 0.22 percent to 143.96 yen, staying near multi-year highs amid expectations of prolonged Bank of Japan easing.
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GBP/USD: The British pound inched up 0.05 percent to 1.3426, holding steady despite broader dollar strength.
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USD/CHF: The dollar rose 0.40 percent against the Swiss franc to 0.8283, benefiting from safe-haven demand.
Commodity Currencies Under Pressure
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AUD/USD: The Australian dollar dropped 0.35 percent to 0.6411, hurt by weaker risk appetite.
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NZD/USD: The New Zealand dollar was the worst performer, sliding 0.63 percent to 0.5900, as traders priced in a dovish Reserve Bank of New Zealand stance.
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USD/CAD: The US dollar gained 0.07 percent to 1.3867 against its Canadian counterpart, supported by steady oil prices.
Global Markets Close Lower on Thursday; Mixed Performance Across Asia
Thursday's trading session saw most major global indices end in negative territory, with losses across European and Asian markets, though some benchmarks bucked the trend.
Canadian Market Rises Modestly
North of the U.S. border, Canada's S&P/TSX Composite (^GSPTSE) edged up 14.84 points, or 0.06 percent, to finish at 25,854.01, with 249.937 million shares changing hands.
UK and European Markets Slide
The FTSE 100 (^FTSE) in London fell 47.20 points, or 0.54 percent, to close at 8,739.26, weighed down by declines in energy and financial stocks.
Germany's DAX (^GDAXI) dropped 123.23 points, or 0.51 percent, settling at 23,999.17, while France's CAC 40 (^FCHI) lost 46.05 points, or 0.58 percent, ending at 7,864.44.
The broader EURO STOXX 50 (^STOXX50E) declined 29.98 points, or 0.55 percent, to 5,424.48, and the Euronext 100 (^N100) slipped 10.26 points, or 0.64 percent, to 1,592.13.
Belgium's BEL 20 (^BFX) was among the worst performers in Europe, shedding 36.13 points, or 0.80 percent, to finish at 4,487.25.
Mixed Moves in Asia, the Pacific and Southeast Asia
In Asia, Hong Kong's Hang Seng Index (^HSI) tumbled 283.47 points, or 1.19 percent, to 23,544.31, while in South Korea the KOSPI (^KS11) slid 31.91 points, or 1.22 percent, to 2,593.67.
China's SSE Composite (000001.SS) slipped 7.39 points, or 0.22 percent, to 3,380.19, and in Japan the Nikkei 225 (^N225) retreated 313.11 points, or 0.84 percent, to 36,985.87.
Taiwan's TWSE Index (^TWII) fell 132.95 points, or 0.61 percent, to 21,670.96, while in Malaysia the FTSE KLCI (^KLSE) dropped 17.78 points, or 1.15 percent, to 1,527.02.
However Indonesia's IDX Composite (^JKSE) rose 24.52 points, or 0.34 percent, to 7,166.98.
In Australia the S&P/ASX 200 (^AXJO) dipped 38.10 points, or 0.45 percent, to 8,348.70, while the broader All Ordinaries (^AORD) lost 40.30 points, or 0.47 percent, closing at 8,571.40.
India's S&P BSE SENSEX (^BSESN) declined 644.64 points, or 0.79 percent, to 80,951.99, and in New Zealand the NZX 50 (^NZ50) edged down 40.85 points, or 0.32 percent, to 12,662.25.
Markets in Middle East and Africa Mixed
Egypt's EGX 30 (^CASE30) gained 139.00 points, or 0.44 percent, to 31,975.60.
Israel's TA-125 (^TA125.TA) saw a sharp drop, losing 35.42 points, or 1.33 percent, to 2,625.66, while South Africa's Top 40 USD Net TRI Index (^JN0U.JO) fell 46.64 points, or 0.90 percent, to 5,115.22.
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