MARKET RECAP | TREASURY YIELDS SPIKE, STOCKS SLIDE, TRUMP TAX BILL PASSES HOUSE
We finally got our first real red day after a week of steady gains, as markets digested a spike in Treasury yields triggered by a weak $16 billion auction of 20-year bonds. The poor demand raised alarms about the growing U.S. debt load, especially in the context of President Trump’s newly passed tax and spending bill, which analysts warn could add $3–5 trillion to the country’s existing $36.2 trillion debt.
House Narrowly Passes Trump’s Spending Bill
After days of intense internal GOP debate, the House passed the sweeping tax and spending bill in a tight 215-214 vote. All Democrats opposed the legislation. The bill includes:
- Extension of 2017 tax cuts
- New tax breaks on tips and auto loans
- Increased defense and border security spending
- Cuts to low-income food and health programs
It now moves to the Senate, where further revisions are expected before a final vote this summer.
Bond Market Shock
Yields surged across the curve, with upward pressure stemming from both the weak auction and fiscal outlook. As yields rise, so do borrowing costs — and the ripple effect hit equities hard.
- The Dow Jones fell over 800 points
- $QQQ (Nasdaq 100) dropped 1.39% to close at 513.04
This puts $QQQ right near the critical 500 psychological support — which also coincides with the open gap zone down to 493. If bulls can’t hold 500, we could see short-term downside acceleration.
Key resistance levels to watch on a recovery: 518 → 520 → 522/523, with 540 still the all-time high target.
Economic Data Coming Up
Watch for S&P Global Flash PMIs, as they’ll offer a fresh read on how Trump’s tariff agenda and global trade shifts are impacting U.S. business sentiment:
- Manufacturing PMI: expected to dip to 49.9
- Services PMI: expected to edge up to 51.0
- Composite PMI (last reading: 50.6) is barely in expansion territory
STOCKS IN FOCUS
- Snowflake (SNOW) surged premarket after raising its FY26 product revenue forecast, driven by demand for AI-related data tools.
- Urban Outfitters (URBN) jumped on its third straight quarter of accelerating EPS and back-to-back revenue beats.
CRUDE OIL FALLS AS OPEC+ MULLS OUTPUT INCREASE
Oil sold off again Thursday morning, with Brent down 1.4% to $63.99 and WTI at $60.69 amid reports that OPEC+ is considering a 411,000 bpd output hike in July. A final decision is expected at their June 1 meeting.
OTHER ASSETS TO WATCH
- Bitcoin is now making new all-time highs above $111,000, putting fresh bullish momentum behind crypto miners — worth watching for OP entries.
- Gold remains elevated around $3,350/oz, reflecting investor demand for inflation and fiscal-debt hedges.
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