U.S. equity futures were mostly flat early Thursday, pausing after a sharp drop in the previous session as traders digested concerns about rising national debt and awaited further economic data.
As of 05:55 ET, futures tied to the Dow Jones Industrial Average dipped by 42 points (0.1%), while S&P 500 Futures added 6 points (0.1%) and Nasdaq 100 Futures climbed 50 points (0.2%).
Wednesday’s selloff was led by the Dow, which shed more than 800 points, dragged down by a surge in U.S. Treasury yields. The jump in yields followed renewed anxiety over the country’s fiscal health, as President Donald Trump’s sweeping tax and spending bill gained momentum in Congress.
A lackluster $16 billion sale of 20-year Treasury bonds added to pressure on the bond market, pushing yields higher and further rattling investors.
Trump Tax Bill Narrowly Clears House Vote
In a razor-thin vote, the House of Representatives passed Trump’s comprehensive tax and spending proposal early Thursday, moving the legislation one step closer to law. The bill passed 215–214, with a single member voting present and no Democratic support.
The legislation now heads to the Senate, where revisions are likely, and a final vote is expected before August.
The bill proposes to extend the 2017 tax cuts and introduce further reductions, particularly on tipped income and car loans. It also includes increases in defense and border security funding. However, the bill also plans to slash federal aid for low-income families, including food and healthcare programs.
Independent budget experts estimate the bill could inflate the national debt by $3 trillion to $5 trillion over the next decade – on top of the existing $36.2 trillion debt load.
Initially, it was unclear whether House Speaker Mike Johnson could rally sufficient Republican support, with some GOP members calling for more aggressive spending cuts. However, Johnson expressed confidence that the bill would pass, even in the face of unanimous Democratic opposition.
Markets Watch PMI Data for Economic Clues
Investors are now turning their attention to the release of S&P Global’s flash PMI data for May, which could offer fresh insights into how the economy is holding up amid ongoing trade tensions.
Last month’s composite PMI slipped to 50.6 from March’s 53.5, signaling a slowdown in business activity. For May, forecasts suggest that manufacturing may dip slightly into contraction territory at 49.9, while the services index could tick up to 51.0.
These readings are seen as key to gauging how tariffs and fiscal uncertainty are affecting U.S. businesses.
Snowflake and Urban Outfitters Rally Premarket
On the corporate front, Snowflake (NYSE:SNOW) shares jumped in premarket trading after the cloud data platform raised its fiscal 2026 product revenue outlook. The company is betting big on a sustained demand surge driven by the enterprise adoption of AI technologies.
Also making gains was Urban Outfitters (NASDAQ:URBN), which reported a better-than-expected quarter. The retailer posted its second straight quarter of strong revenue and its third in a row with accelerating earnings per share growth.
Oil Prices Dip on Supply Concerns and OPEC+ Talks
Crude oil prices extended their decline on Thursday amid fresh speculation that major oil producers could soon ramp up supply.
As of 05:55 ET, Brent crude was down 1.4% to $63.99 per barrel, while West Texas Intermediate (WTI) also fell 1.4% to $60.69.
Reports from Bloomberg indicate that OPEC+ – the alliance of the Organization of the Petroleum Exporting Countries and its partners – is weighing a possible output increase during its next policy meeting on June 1. A production hike of approximately 411,000 barrels per day for July is one of the options being discussed, though no decision has been finalized.
OPEC+ has already begun gradually easing supply restrictions, with incremental output increases scheduled for May and June.