U.S. stock index futures showed signs of stabilization early Thursday, following a steep downturn that rattled markets midweek.
As of 05:55 ET (09:55 GMT):
- Dow Jones Futures slipped 42 points, or 0.1%
- S&P 500 Futures edged up 6 points, or 0.1%
- Nasdaq 100 Futures rose 50 points, or 0.2%
The broader market had tumbled Wednesday, with the Dow Jones Industrial Average plunging more than 800 points, driven by a sharp climb in U.S. Treasury yields. The selloff was largely tied to investor anxiety surrounding President Donald Trump’s proposed tax bill, projected to add up to $5 trillion to the national debt.
Adding to market pressure, a poorly received $16 billion auction of 20-year Treasury bonds fueled concerns about weak demand for U.S. debt.
Tax Bill Sparks Debt, Revenue Concerns
The House of Representatives is preparing to vote on a wide-ranging tax and spending package, which includes:
- Extension of 2017 Trump-era tax cuts
- New cuts on tips and car loan interest
- Increased funding for defense and border security
- Cuts to food and health programs for low-income groups
Nonpartisan budget analysts warn the bill could expand the current $36.2 trillion federal debt by $3 trillion to $5 trillion. Credit agency Moody’s recently downgraded the U.S. credit outlook, citing repeated failures to implement sustainable fiscal reforms.
Trump’s claim that tariff revenues will offset revenue losses remains under scrutiny. So far, such revenues have fallen significantly short of bridging the projected budget shortfall.
PMI, Earnings, Oil Price Trends in Focus
Investor sentiment now turns to the May flash PMI data, which will offer fresh insight into business activity amid trade headwinds.
- S&P Global Composite PMI dropped to 50.6 in April from 53.5 in March
- Manufacturing PMI forecast to dip to 49.9
- Services PMI expected to edge up to 51.0
In corporate news:
- Snowflake (NYSE: SNOW) jumped premarket after raising its FY26 revenue forecast, buoyed by demand in AI-powered data analytics
- Urban Outfitters (NASDAQ: URBN) rallied following a better-than-expected earnings report, marking its third straight quarter of EPS growth
Meanwhile, crude oil prices continued to decline:
- Brent futures fell 1.4% to $63.99 per barrel
- WTI crude dropped 1.4% to $60.69 per barrel
The drop follows reports that OPEC+ may raise output by 411,000 barrels/day in July, increasing concerns over a potential supply glut.
