US stock futures traded flat as a vote on President Trump’s “big, beautiful” tax bill neared.
Futures attached to the Dow Jones Industrial Average (YM=F) slipped 0.1%. Futures attached to the benchmark S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) flatlined.
On Wednesday evening, House Speaker Mike Johnson said he plans to move ahead with a vote on Trump’s tax legislation as soon as tonight despite Republican lawmakers in the House Freedom Caucus maintaining the bill is “not ready.”
Johnson revealed earlier on Wednesday the bill would include a more generous deduction for state and local taxes (SALT) as part of the push to get to a floor vote. Republican holdouts say a series of outstanding issues remain, including Medicaid payments and green energy credits.
During the day on Wednesday, stocks fell and bond yields rose, with the 30-year Treasury yield briefly rising above 5% as the tax bill exacerbated worries on Wall Street about the US’s ballooning debt.
The legislation could add trillions to the deficit, a dizzying prospect for investors, especially after Moody’s downgraded the US credit rating on Friday and directly cited the proposal in its explanation.
Other than digesting the latest in Washington, on Thursday investors will receive fresh economic data, including weekly jobless claims, US existing home sales, and the Institute for Supply Management’s Purchasing Managers’ Index (PMI).
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