NASDAQ Index, SP500, Dow Jones Forecasts –

Wall Street Ends Flat as Easing Yields Offset Fiscal Concerns

Stocks closed little changed on Thursday in a volatile session as investors digested easing Treasury yields and fresh fiscal headlines from Washington. The market struggled for direction following Wednesday’s steep sell-off, with longer-dated yields pulling back after surging on growing concerns about the ballooning U.S. deficit.

Did Lower Treasury Yields Give Stocks Breathing Room?

The yield on the benchmark 10-year Treasury note dropped 5.4 basis points to 4.543%, cooling after touching its highest level since February. The retreat in yields followed the House’s narrow passage of President Trump’s new tax and spending bill, which could add $3.8 trillion to the national debt over the next decade, according to the Congressional Budget Office. The fiscal strain had recently rattled bond markets, putting pressure on equities.

Market participants were also wary of the potential inflationary impact of Trump’s proposed tariffs, which could fuel further interest rate volatility. “The market hates uncertainty and we’ve still got this overhang of tariffs and the bond market,” said George Young of Villere & Co.

Which Sectors Managed to Outperform?

The Nasdaq outperformed slightly, gaining 0.28%, while the Dow and S&P 500 each closed marginally lower. Sector-wise, technology, consumer discretionary, and communication services stocks provided support, offsetting weakness in utilities, energy, healthcare, and consumer staples.

Among tech leaders, Nvidia, Amazon, and Tesla advanced, while Alphabet gained 1.3%, touching a three-month high. Apple slipped 0.36%. Cloud computing firm Snowflake surged over 13% after raising its 2026 product revenue forecast.

How Did Earnings and Policy Headlines Hit Specific Stocks?

Despite beating quarterly estimates, Nvidia, as cautious sentiment weighed on semiconductors. Solar names fell sharply with First Solar down 4.3% on expectations that Trump’s tax package will slash green-energy subsidies, a key earnings pillar for the sector.

Decliners outpaced advancers by a 1.17-to-1 margin on the NYSE, with volume slightly below average at 16.09 billion shares.

What’s Next for Traders Watching the Fed and Tariffs?

Traders remain laser-focused on interest rate signals and tariff policy. While easing yields offered temporary relief, the broader concern over the U.S. fiscal path and global trade friction is far from resolved.

With the Federal Reserve’s policy tone and inflation data still top of mind, markets could remain range-bound unless clearer direction emerges. Investors should brace for continued volatility tied to fiscal headlines and Treasury market reactions.

More Information in our Economic Calendar.