Trump’s “big and beautiful bill” aims to reduce EV tax credits
President Donald Trump’s tax bill includes measures to kill the Obama-era electric vehicle tax credit.
US stocks opened lower amid mixed earnings reports, concerns about violence in the Middle East, and rising long-term bond rates.
The Dow Jones industrial average was 0.9% off, opening 370 points close to 42,308, and the Broad S&P 500 index lost 0.7% (39 points). Tech Heavy Nasdaq Composite lost 0.6% or 105 points and traded at nearly 19,038 in the morning.
The 30-year US bond yields are forecast to rise again above the 5% level, 5%, as investors worried about the deficit, and the spiral will rise once the White House tax bill becomes law. Bond prices move in the opposite direction of yield. Major long bonds have not exceeded 5% since October 2023.
Tensions in the Middle East are making oil prices higher
New US Intelligence saw oil prices rise in CNN reports suggesting Israel is preparing for a potential strike at Iranian nuclear facilities. It was unclear whether the Israeli leader made a final decision on whether to carry out the strike, CNN said, citing an unknown official.
Crude oil prices rose 1.3% to trade nearly $63 a barrel.
Cryptocurrency
The Texas House of Representatives approved the state’s Bitcoin reserve bill and sent crypto-related laws to the governor’s desk for possible signing them. The bill will allow Texas to stockpile Bitcoin and potentially other cryptocurrencies. The state secretary controls reserves and the likelihood of buying and selling digital assets.
Bitcoin rose 1.6% to $106,525.
Corporate profits
Homebuilder Toll Brothers took the top forecasts for analysts in the second fiscal quarter. The stock price rose nearly 2%.
Palo Alto Networks defeated Wall Street forecasts in the recent quarter, but gross profits were overlooked. Stock was over 6% slipped.
Before the bell, Big Box retailer targets reduced their year-round sales outlook, citing consumer uncertainty regarding consumer spending due to tariffs and uncertainty in consumer spending due to backlash in DEI efforts. Sales in the first three months of the year also didn’t meet analysts’ expectations. Target’s competitor Walmart has been caught up in a war of words with President Donald Trump over a statement that tariffs would raise prices to the chain. The target strain rolled after the opening bell.
Home Improvement Retail Chain Low revenues were reported in the first three months of the year that surpassed Wall Street’s forecast. Stocks were virtually unchanged in early trade.
Medora Lee is a money, market and personal finance reporter for USA Today. mjlee@usatoday.com and Subscribe to our free daily money newsletter Personal finance tips and business news every Monday to Friday.
