Stock Market Today: Indexes Waver Amid Deficit Concerns and Rising Treasury Yields

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Major Indexes Show Mixed Performance as Fiscal Worries Persist

The stock market showed mixed performance on Friday, May 23, 2025, as investors continued to evaluate the impact of higher U.S. Treasury yields and mounting concerns about the federal deficit. Early trading saw futures tied to the Dow Jones Industrial Average down slightly by 15 points (0.04%), while S&P 500 futures traded flat and Nasdaq 100 futures dipped 0.09%.

By mid-morning, the major indexes were wavering between modest gains and losses. The S&P 500 and Dow Jones are both tracking for weekly losses of nearly 2%, while the Nasdaq Composite is heading for a 1.5% decline week-to-date. This marks the third consecutive losing day for both the S&P 500 and the Dow.

Treasury Yields and Deficit Concerns Weigh on Market Sentiment

Market sentiment has been significantly impacted by President Trump’s sweeping tax bill, which cleared the House of Representatives on Thursday by a razor-thin margin (215-214) and now moves to the Senate. The bill has raised concerns about its effect on the nation’s debt and deficit, sending long-term Treasury yields higher.

The 30-year Treasury bond yield touched a high of 5.161% on Thursday, its highest level since October 2023, while the 10-year Treasury note briefly breached 4.6%. These elevated yields reflect investor worries about the bill’s potential $3.8 trillion addition to the federal government’s $36.2 trillion debt over the next decade.

“Even if the inability to reduce the deficit in the U.S. doesn’t lead to default, a large deficit still implies greater bond supply, and perhaps eventual inflation as the debt is monetized to avoid default,” said Thierry Wizman, global rates and currencies strategist at Macquarie.

Notable Stock Movers and Sector Performance

Several stocks are making significant moves today. Among the biggest decliners this week were Enphase Energy (ENPH), down 19.63%, Humana (HUM), falling 7.58%, and NextEra Energy (NEE), dropping 6.43%.

Solar energy companies, including First Solar (FSLR), have been particularly hard hit, dropping 4.3% as Trump’s tax bill is expected to end a number of green-energy subsidies.

In the tech sector, Alphabet (GOOGL) outpaced other megacap stocks with a 3.4% rise, while Snowflake (SNOW) jumped 9% after raising its fiscal-year 2026 product revenue forecast. The cryptocurrency-related stock Coinbase (COIN) was among the S&P’s top gainers, rising 5% on crypto sector optimism as Bitcoin reached new all-time highs above $110,000.

Sector-wise, utilities, health, and energy lagged, while technology stocks showed relative strength.

Upcoming Market Events and Economic Data

Investors are heading into a holiday weekend, with the stock market closed on Monday for Memorial Day. Several important economic indicators are scheduled for release in the coming days:

– Building permits and new home sales data expected later today
– German ifo Business Climate report on Monday, May 26
– Core Durable Goods Orders and Durable Goods Orders m/m on Tuesday, May 27

Market Outlook and Analyst Perspectives

Despite recent volatility, U.S. stocks have had a solid month overall, with the S&P 500 climbing more than 15% from its April lows when concerns about reciprocal tariffs roiled global markets. However, the index remains about 3% below its record highs.

Fed Governor Christopher Waller recently indicated that central bank rate cuts would be considered if the Trump administration’s tariff agenda settles on the lower side. Traders currently anticipate at least two 25-basis-point rate cuts by the end of the year, according to data compiled by LSEG.

As fiscal concerns and Treasury yield pressures continue to influence market dynamics, investors will be closely monitoring developments in the Senate regarding the tax bill and upcoming economic data releases for further direction.