The Blubber

resident Donald Trump’s tax bill narrowly passed the U.S. House of Representatives by a single vote, intensifying concerns over the nation’s ballooning debt. The legislation includes tax breaks for tipped income and car loans, while also increasing funding for military spending and border enforcement.

Late last week, Moody’s became the final major credit rating agency to downgrade the U.S., stripping it of its prized AAA rating.

On the bond market, 30-year U.S. Treasury yields were last down 3.2 basis points at 5.0573%. Weak demand for a $16 billion auction of 20-year bonds on Wednesday has added to worries about declining appetite for U.S. debt. Meanwhile, Germany’s benchmark 20-year yields reached a two-month high earlier in the day.

After a steep selloff the day before, U.S. stocks rebounded on Thursday.

“It’s remarkable how resilient this market is, especially with all the looming uncertainty and potential negative headlines,” said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma. “Right now, tech is the market’s safety net.”

• Dow Jones Industrial Average rose 51.28 points (0.12%) to 41,912.24
• S&P 500 climbed 8.79 points (0.15%) to 5,853.45
• Nasdaq Composite gained 118.49 points (0.63%) to 18,990.84

Shares of Alphabet rose 2.5%, helping push the communication services sector up 0.9%.

Globally, MSCI’s all-country stock index dipped 0.22% to 872.01, while Europe’s STOXX 600 slipped 0.72%.

In the UK, April borrowing figures showed the British government borrowed more than anticipated. In the eurozone, business activity unexpectedly fell back into contraction.

The euro weakened following the data, dropping 0.44% to $1.1279, while the U.S. dollar rose modestly after three consecutive days of losses. By late morning in New York, the dollar edged up 0.1% to 143.75 yen, rebounding from a low of 142.80, its weakest level since May 7.

Meanwhile, Bitcoin surged to a new all-time high, as some investors turned to crypto as a hedge against U.S. economic uncertainty.

The Congressional Budget Office estimates that Trump’s tax cuts could add $3.8 trillion to the existing $36.2 trillion U.S. national debt over the next decade.

Elsewhere, reports that OPEC+ may increase oil production in July weighed on prices.

• U.S. crude fell 1.45% to $60.69 per barrel
• Brent crude dropped 1.51% to $63.93 per barrel