U.S. stock futures held steady Thursday morning after a sharp market decline the day before, as concerns over President Donald Trump’s proposed tax and spending bill weighed on investor sentiment. The bill, labeled by Trump as “one big beautiful bill,” could increase the national debt by $3.8 trillion over the next decade, according to the Congressional Budget Office. This potential surge in debt has rattled financial markets, particularly amid a backdrop of already rising Treasury yields.
The House of Representatives is debating the bill, with a final vote expected later in the day. The legislation has largely followed party lines and comes at a time when market analysts and investors are increasingly wary of U.S. fiscal sustainability. Susannah Streeter of Hargreaves Lansdown highlighted investor hesitation, noting a broader unease about financing the government’s expanding obligations. Treasury yields saw a modest dip Thursday morning, offering slight relief after spiking to multi-month highs earlier in the week.
Despite overall market jitters, some tech and growth stocks rebounded in premarket trading. Alphabet rose 1.3%, and cryptocurrency-related companies saw notable gains as Bitcoin hit a record high. Coinbase, MicroStrategy, and Marathon Digital Holdings all posted premarket increases. Additionally, Snowflake surged 10.2% after raising its fiscal 2026 revenue outlook, contributing to a tech-led counterbalance to broader market concerns.
The S&P 500 has rallied over 15% from its April lows, buoyed by a temporary pause in U.S.-China tariff tensions and calming inflation data. However, the index remains about 3% below its record high. The Dow and S&P 500 were down nearly 2% and 1.6% respectively on Wednesday, showing vulnerability despite the broader uptrend. Upcoming speeches from Federal Reserve officials and fresh economic data could further sway markets.
Some sectors have not fared as well under the current policy outlook. Solar energy stocks like First Solar dropped 3.4% amid fears that green energy subsidies could be slashed under Trump’s tax plan. Meanwhile, UnitedHealth continued its slump, extending a 6% drop from the previous session. With most companies having reported earnings, investor focus now turns to key reports from Analog Devices and Nvidia in the coming days.
Source: Reuters