Stocks Rebound As Treasury Yields Fall, Bitcoin Tops $111,000: What's Driving Markets Thursday?

Wall Street edges higher as GOP tax bill clears the House and bond yields ease, helping investors shake off prior losses while digesting mixed May business activity data.

President Donald Trump's "one big beautiful tax bill" narrowly passed the House in a 215-214 vote and now moves to the Senate. According to the Congressional Budget Office, the proposed legislation is projected to add approximately $3 trillion to the national deficit over the next decade.

U.S. Treasury yields saw a whipsaw session, with the 30-year bond yield initially spiking to 5.15% before retreating by 9 basis points to 5.06% by midday in New York. The reversal in long-term rates signaled renewed investor appetite for long-duration bonds amid attractive yields.

Wednesday's sharp rise in yields had triggered a broad afternoon selloff in equities, but Thursday's pullback eased pressure on risk assets and improved investor sentiment.

The S&P 500 rose 0.3% to 5,860 on Thursday, slightly recouping losses from the previous session. The tech-heavy Nasdaq 100 outperformed with a 0.7% gain.

Technology and consumer discretionary stocks led gains, riding momentum from falling yields. In contrast, defensive sectors like utilities and healthcare lagged.

The U.S. dollar index (DXY) is on track to snap a three-day losing streak, supported by stronger-than-expected Purchasing Managers' Index (PMI) data for May. While the surveys pointed to solid growth, they also revealed renewed inflationary pressures, which tempered hopes for near-term Federal Reserve rate cuts.

Markets now fully price in a 25-basis-point rate cut only by December 2025, compared to prior expectations of an October move, based on CME Group's FedWatch Tool.

Bitcoin (CRYPTO: BTC) extended its 2025 rally, jumping 2% above $111,000 to set fresh all-time highs. The world's largest cryptocurrency is now up 20% year-to-date.

Gold prices, however, fell 0.7% to trade below $3,200 per ounce. Despite Thursday's drop, the precious metal has surged 25% so far in 2025, outperforming other major asset classes, continuing to attract inflows amid sticky inflation and uncertain fiscal policy paths.

Thursday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust (NYSE:SPY) inched 0.3% up to $584.61.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) inched 0.2% higher to $419.70.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rose 0.7% to $516.50.
• The iShares Russell 2000 ETF (NYSE:IWM) inched 0.1% higher to $203.51.
• The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) outperformed, up 0.6%; the Utilities Select Sector SPDR Fund (NYSE:XLV) lagged, down 1.5%.

Thursday’s Stock Movers

Stocks reacting to earnings reports included:

• Analog Devices, Inc. (NASDAQ:ADI) down 3.88%
• Ralph Lauren Corporation (NYSE:RL) up 0.51%
• BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) down 0.92%
• e.l.f. Beauty, Inc. (NYSE:ELF) up 3.38%
• SM Energy Company (NYSE:SM) down 0.35%

Solar stocks tumbled after the GOP tax bill cleared the House, with the sector seeing sharp losses amid concerns over reduced clean energy incentives.

• Sunrun Inc. (NASDAQ:RUN) down 39%
• Invesco Solar ETF (NASDAQ:TAN) down 8%
• Enphase Energy Inc. (NASDAQ:ENPH) down 19%

As the tax bill suggests increased deficits that could boost spending in sectors like defense and homeland security, tech-focused defense stocks moved higher.

• Palantir Technologies Inc. (NYSE:PLTR) up 4.5%
• CrowdStrike Holdings Inc. (NASDAQ:CRWD) up 2.6%

Stocks slated to report earnings after the close include Ross Stores Inc. (NASDAQ:ROST), CryoPort Inc. (NASDAQ:CYRX), Workday Inc. (NASDAQ:WDAY), Intuit Inc. (NASDAQ:INTU), Autodesk Inc. (NASDAQ:ADSK) and Deckers Outdoor Corp. (NYSE:DECK).

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