Yuri Kageyama and Matt Ott, Associated Press
Bonds are higher, and Wall Street reversed from small profits to losses before opening bell Thursday after US debt rose the day before.
Dow Jones’ industrial average futures fell 0.5% in pre-market trading, while S&P 500 and Nasdaq futures slipped 0.3% each.
The US market is also responding to the early aisle of the House on Thursday for a Republican Several Dollar spending bill aimed at adding others while extending the tax cuts of around $4.5 trillion from President Donald Trump’s first term in 2017. The bill, which has strict requirements for Medicaid and other programs, is expected to undergo several changes when it reaches the Senate for votes.
The law also includes a quick rollback of production tax credits for clean power projects in which the solar company shares sent tumbling shares. The first solar slid over 7%, but Sunran lost almost a third of its value. Energy technology company Enphase Energy fell 15%.
Healthcare stocks were falling early Thursday after the Centers for Medicare & Medicaid Services said they would soon expand their Medicare Advantage Plan audit. UnitedHealth Group fell 3.5%, while Humana fell 4.8%.
The US market has ruled out big losses for a day ago over concerns over the bill’s costs and already rising US debt. The nonpartisan Congressional Budget Office said the tax provisions would increase the federal deficit by $3.8 trillion over a decade.
The Treasury was engraved on Thursday after the US government spiked on the day before it announced the results of its latest auction of 20-year bonds. Such bonds helped pay government bills, and the auction had to offer a yield of 5% or more to attract sufficient buyers.
The 10-year yield was 4.62% early on Thursday, up from 4.51% two days ago, a major move in the bond market.
The rise in US Treasury yields is a coal mine canary, Stephen Innes of Spi Asset Management said in the commentary.
“The US still has the largest market, deepest liquidity, and dollar inertia in the US. But even inertia cannot pass compound interest and structural flaws forever,” he writes.
According to some Asian countries, the US dollar decline was heavier in Asian regional markets, according to some analysts. It also affects Asian exporters, such as Japanese car manufacturers and electronics companies.
In currency trading, the US dollar fell from 143.68 yen to 143.35 yen. It was traded for 150 yen a year ago. The euro slid to $1.1312.
The Japanese benchmark Nikkei 225 pitched 0.8% and finished with 36,985.87.
Hong Kong’s Hangsen lost 1.2% at 23,544.31, while Shanghai’s composite fell 0.2% to 3,380.19.
Australia’s S&P/ASX 200 slipped 8,348.70 to 0.5%. Korea’s Kospi fell 1.2% to 2,593.67.
In Europe, the French CAC40 slipped by 1.1% at noon, while the German DAX fell by 1%. The UK’s FTSE100 fell 0.8%.
Oil prices fell in line with media reports that OPEC+ was considering increasing another production. Benchmark US crude lost 94 cents at $10.63 a barrel. International standard Brent crude fell 99 cents to $63.92 per barrel.
Original issue: May 22, 2025 8:36am EDT
