Wall Street slips as US bond market worries intensify after House passes Trump tax bill
AI-generated image
NEW YORK: US stocks slipped in early Thursday trading amid growing concerns over rising government debt and surging Treasury yields, following House approval of President
Donald Trump
's sweeping tax cut legislation.
The S&P 500 fell 0.3 per cent in early trade, putting it on track for its worst week in two months. The Dow Jones Industrial Average declined 101 points, or 0.2 per cent, to 41,829.75 around 9.35 am Eastern time, while the Nasdaq Composite dipped 0.2 per cent to 19,535.10.
The pullback comes after a turbulent week driven by volatility in the bond market, the epicentre of investor anxiety. Yields on government debt spiked in response to fiscal concerns, with the 10-year US Treasury climbing as high as 4.63 per cent before edging back to 4.59 per cent.
The 30-year bond yield also rose, reaching 5.12 per cent. Rising yields reflect investor unease over the US government's growing debt load and are seen as a headwind for equity valuations and borrowing costs.
Swissquote Bank analyst Ipek Ozkardeskaya said the spike in yields is 'the market's way of signaling a lack of confidence in the US government and its policy direction.'
The tax legislation approved by the House aims to extend around $4.5 trillion in tax cuts from Trump's 2017 plan while introducing additional reductions.
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Thị trường có dấu hiệu suy thoái không?
IC Markets
Đăng ký
Undo
However, it also scales back clean energy subsidies and includes cuts to certain social programmes. The bill is expected to undergo substantial revisions in the Senate before potentially reaching the president's desk.
Investors are cautious about the long-term economic implications of the tax bill, particularly its projected impact on the national debt. Higher Treasury yields not only increase borrowing costs for the government but also ripple through the broader economy—raising expenses for households and businesses, and dampening appetite for riskier assets like equities.
Sector-specific losses were also notable. Solar energy stocks took a hit following the proposed rollback of production tax credits. Sunrun plunged 40 per cent, Enphase Energy dropped 16.5 per cent, and First Solar fell 4 per cent. Health care shares declined after the Centers for Medicare & Medicaid Services announced an immediate expansion of Medicare Advantage audits. UnitedHealth Group fell 1.4 per cent, while Humana slid 3.6 per cent.
Global markets mirrored the cautious sentiment. France's CAC 40 declined 1.1 per cent, Hong Kong's Hang Seng dropped 1.2 per cent, and South Korea's Kospi also shed 1.2 per cent in one of the day's sharper losses.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
27 minutes ago
- News18
Republican push for proof of citizenship to vote proves tough sell in states
Austin, Jun 3 (AP) President Donald Trump and congressional Republicans have made it a priority this year to require people to prove citizenship before they can register to vote. Turning that aspiration into reality has proved difficult. Trump's executive order directing a documentary, proof-of-citizenship requirement for federal elections has been blocked by a judge, while federal legislation to accomplish it doesn't appear to have the votes to pass in the Senate. At the same time, state-level efforts have found little success, even in places where Republicans control the legislature and governor's office. The most recent state effort to falter is in Texas, where a Senate bill failed to gain full legislative approval before lawmakers adjourned on Monday. The Texas bill was one of the nation's most sweeping proof-of-citizenship proposals because it would have applied not only to new registrants but also to the state's roughly 18.6 million registered voters. 'The bill authors failed spectacularly to explain how this bill would be implemented and how it would be able to be implemented without inconveniencing a ton of voters," said Anthony Gutierrez, director of the voting rights group Common Cause Texas. Voting by noncitizens is already illegal and punishable as a felony, potentially leading to deportation, but Trump and his allies have pressed for a proof-of-citizenship mandate by arguing it would improve public confidence in elections. Before his win last year, Trump falsely claimed noncitizens might vote in large enough numbers to sway the outcome. Although noncitizen voting does occur, research and reviews of state cases has shown it to be rare and more often a mistake. Voting rights groups say the various proposals seeking to require proof-of-citizenship are overly burdensome and threaten to disenfranchise millions of Americans. Many do not have easy access to their birth certificates, have not gotten a US passport or have a name that no longer matches the one on their birth certificate — such as women who changed their last name when they married. The number of states considering bills related to proof of citizenship for voting tripled from 2023 to this year, said Liz Avore, senior policy adviser with the Voting Rights Lab, an advocacy group that tracks election legislation in the states. That hasn't resulted in many new laws, at least so far. Republicans in Wyoming passed their own proof-of-citizenship legislation, but similar measures have stalled or failed in multiple GOP-led states, including Florida, Missouri, Texas and Utah. A proposal remains active in Ohio, although Gov. Mike DeWine, a Republican, has said he doesn't want to sign any more bills that make it harder to vote. In Texas, the legislation swiftly passed the state Senate after it was introduced in March but never made it to a floor vote in the House. It was unclear why legislation that was such a priority for Senate Republicans – every one of them co-authored the bill — ended up faltering. 'I just think people realized, as flawed as this playbook has been in other states, Texas didn't need to make this mistake," said Rep. John Bucy, a Democrat who serves as vice chair of the House elections committee. Bucy pointed to specific concerns about married women who changed their last name. This surfaced in local elections earlier this year in New Hampshire, which passed a proof-of-citizenship requirement last year. Other states that previously sought to add such a requirement have faced lawsuits and complications when trying to implement it. In Arizona, a state audit found that problems with the way data was handled had affected the tracking and verification of residents' citizenship status. It came after officials had identified some 200,000 voters who were thought to have provided proof of their citizenship but had not. A proof-of-citizenship requirement was in effect for three years in Kansas before it was overturned by federal courts. The state's own expert estimated that almost all of the roughly 30,000 people who were prevented from registering to vote while it was in effect were U.S. citizens who otherwise had been eligible. In Missouri, legislation seeking to add a proof-of-citizenship requirement cleared a Senate committee but never came to a vote in the Republican-led chamber. Republican state Sen. Ben Brown had promoted the legislation as a follow-up to a constitutional amendment stating that only U.S. citizens can vote, which Missouri voters overwhelmingly approved last November. He said there were several factors that led to the bill not advancing this year. Due to the session's limited schedule, he chose to prioritize another elections bill banning foreign contributions in state ballot measure campaigns. 'Our legislative session ending mid-May means a lot of things die at the finish line because you simply run out of time," Brown said, noting he also took time to research concerns raised by local election officials and plans to reintroduce the proof-of-citizenship bill next year. The Republican-controlled Legislature in Utah also prioritized other election changes, adding voter ID requirements and requiring people to opt in to receive their ballots in the mail. Before Gov. Spencer Cox signed the bill into law, Utah was the only Republican-controlled state that allowed all elections to be conducted by mail without a need to opt in. Under the Florida bill that has failed to advance, voter registration applications wouldn't be considered valid until state officials had verified citizenship, either by confirming a previous voting history, checking the applicant's status in state and federal databases, or verifying documents they provided. top videos View all The bill would have required voters to prove their citizenship even when updating their registration to change their address or party affiliation. Its sponsor, Republican state Rep. Jenna Persons-Mulicka, said it was meant to follow through on Trump's executive order: 'This bill fully answers the president's call," she said. (AP) GSP First Published: June 03, 2025, 19:45 IST
Mint
30 minutes ago
- Mint
Golden Dome Missile Shield Project: Trump seeks Japan's help in developing $175 billion defense plan — Report
US President Donald Trump and Japanese Prime Minister Shigeru Ishiba discussed potential collaboration on missile defense technology during a recent phone call, with a focus on the development of Trump's proposed Golden Dome missile shield, the Nikkei reported. According to the report, Japan is expected to partner with the United States on systems aimed at detecting and intercepting missile threats. The Golden Dome project, a $175 billion initiative announced by Trump earlier this year, is designed to establish a vast satellite-based defense shield capable of countering threats from countries like China and Russia. The Nikkei, citing unnamed sources, said Tokyo's involvement could also be strategically leveraged in ongoing trade talks, possibly helping Japan secure relief from US tariffs. While the specifics of Japan's role have not been officially confirmed, Trump's administration is slated for completion by the end of Trump's second term in 2029. Trump on May 20 announced the design selection for the Golden Dome missile defense shield, a sweeping $175 billion initiative aimed at countering missile threats from adversaries such as China and Russia. Trump also named US Space Force General Michael Guetlein as the lead program manager for the project. 'This is about protecting our homeland,' Trump said during a White House press conference. First ordered in January, the Golden Dome project envisions a vast constellation of surveillance and interceptor satellites — potentially numbering in the hundreds — designed to detect, track, and destroy enemy missiles shortly after launch. The system is inspired by Israel's Iron Dome, but Trump said the Golden Dome would be 'far more extensive,' covering threats across multiple continents and domains. The president said he expects the Golden Dome to be fully operational by the end of his term in January 2029. The announcement marks the Pentagon's formal launch of procurement and testing efforts to assemble the necessary systems, sensors, and weapons infrastructure. Key defense contractors named at the press conference include L3Harris Technologies, Lockheed Martin, and RTX Corp (formerly Raytheon Technologies), who are expected to provide core components from existing production lines.
&w=3840&q=100)
First Post
33 minutes ago
- First Post
How Trump is bringing more business to his company than back to America
Since Trump's re-election in November, the Trump Organization — his family's real estate empire — has announced 12 new international projects, including luxury high-rises, golf resorts, and hotels, a sharp increase from the two foreign deals made during his first term, according to a report read more While President Donald Trump campaigned on a promise to bring jobs and business back to the US, his own company appears to be thriving more abroad than at home. According to The Wall Street Journal report, since his re-election in November, the Trump Organization — his family's real estate empire — has announced 12 new international projects, including luxury high-rises, golf resorts, and hotels, a sharp increase from the two foreign deals made during his first term. STORY CONTINUES BELOW THIS AD In January, the Trump Organization touted an ethics agreement stating it would avoid direct business with foreign governments. Yet several of the new deals involve partnerships with entities closely tied to foreign governments, particularly in the Middle East — raising questions about conflicts of interest and whether Trump's global business is outpacing his commitment to American economic revival, added the report. More from World How America is the most dangerous player in India-Pakistan dynamics The Trumps argue there's an important distinction: the company isn't dealing directly with foreign governments. Instead, some of the Trump Organization's new projects are joint ventures with private firms that themselves do business with those governments. According to the report, citing a Trump spokesperson, all 12 international developments were under contract before the November election. Still, company executives admit that interest from foreign partners has surged since Trump's re-election, with many seeing his name as newly valuable following his political comeback, added the report. 'We're the hottest brand in the world right now,' WSJ quoted Eric Trump, the president's son who is running the Trump Organization on a day-to-day basis, as saying. State-backed entities have played a role in several recent Trump deals in the Gulf, including a luxury resort with private beach villas in Qatar. STORY CONTINUES BELOW THIS AD In May, the Trump Organization also moved beyond real estate, signing a $2 billion cryptocurrency agreement with a state investment fund in the United Arab Emirates, reported WSJ. 'I think everybody knows that these countries are giving money to Donald Trump because they think they'll get favorable treatment in exchange," WSJ quoted Sen. Chris Murphy, a Democrat from Connecticut and former chairman of the Senate Foreign Relations Middle East subcommittee, as saying. White House deputy press secretary Anna Kelly said, 'The President is working to secure good deals for the American people, not for himself.' Over the past six months, the Trump Organization has ramped up its real estate ventures in India, launching two new projects with longtime partner Tribeca Developers. The company also announced plans for three more Trump-branded developments. Tribeca founder Kalpesh Mehta, who's had close ties to the Trump family since 2013, has attended both of Trump's inaugurations and dined with the family at Mar-a-Lago, most recently this January. STORY CONTINUES BELOW THIS AD Since Trump's re-election, Mehta has publicly claimed that demand for Trump properties in India has surged. In May, Tribeca and the Trump Organization reported over $300 million in sales after a second Trump Residences Delhi sold out on launch day. According to the report, the Trump Organization's global expansion relies heavily on a licensing model, earning fees for branding and management rather than investing directly. Trump's latest financial disclosure reports over $9 million from six international licensing deals between January 2023 and August 2024. Since the November election, the company has announced twice as many deals as before, added the report. Donald Trump Jr. and Eric Trump have made at least nine international trips to a dozen countries since November, many tied to company ventures. On a recent Eastern Europe tour, branded 'Trump Business Vision 2025,' Trump Jr. dined with prime ministers, spoke at crypto events, and told local media the company is actively seeking new global partners. STORY CONTINUES BELOW THIS AD During Trump's first term, the Trump Organization focused on managing existing assets, reducing debt, and building cash reserves—deliberately avoiding new overseas deals to sidestep conflict-of-interest concerns. 'Don't do deals,' Trump recalled telling his children in a 2023 deposition. 'Run the properties.' Eric Trump said in October the company is rethinking that approach, frustrated it received little credit for scaling back. 'I tried to do everything right in 2016, and I got very little credit for it,' he said. 'We still kind of got stomped on.' With inputs from agencies
