U.S. stock markets stabilized on Thursday, overcoming their initial declines as Treasury yields retreated from their recent highs following the approval of the tax and spending bill proposed by President Donald Trump by the House of Representatives.
According to preliminary data, the S&P 500 index fell by 4.89 points, or 0.08 percent, closing at 5,839.72 points, while the Nasdaq Composite rose by 45.56 points, or 0.27 percent, reaching 18,923.23 points, and the Dow Jones Industrial Average fell by 11.37 points, or 0.03 percent, to 41,849.07 points.
Recent concerns about the U.S. budget deficit have pushed Treasury yields higher and pressured stocks, but long-term yields fell on Thursday, allowing stocks to take a breather.
The yield on the benchmark 10-year U.S. Treasury note fell by 5.4 basis points to 4.5 percent after reaching its highest level since February.
The Republican-controlled House voted narrowly to pass the bill that would fulfill many of Trump's campaign promises to his political base, but it will increase the U.S. national debt of $36.2 trillion by $3.8 trillion over the next decade, according to the Congressional Budget Office, a nonpartisan agency.
Investors are also assessing the impact of Trump's tariffs on U.S. imports, including consumer prices.