Stock Market Today: Stocks Chop After Trump's Tax Bill Passes

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published 22 May 2025

Stocks were choppy Thursday as investors weighed the pros and cons of the Trump administration's new tax bill. One of the three main indexes did manage to close in positive territory thanks to a big rally in tech stocks.

Ahead of the open, Wall Street was met with news that President Donald Trump's "big, beautiful" tax bill passed the House of Representatives by one vote.

It now moves to the Senate, where lawmakers will attempt to pass it through budget reconciliation, which requires a simple majority vs a filibuster and 60 votes.

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"However, reconciliation comes with its own hurdles," writes Kelley Taylor, senior tax editor at Kiplinger.com, in her comprehensive coverage of Trump's tax bill.

"The Senate's Byrd Rule restricts what can be included, barring provisions that aren't directly related to the federal budget or would add to the deficit outside an approved time frame," she adds.

The bill would make most of Trump's Tax Cuts and Jobs Act (TCJA) of 2017 permanent and is projected to add nearly $3 trillion to the deficit over the next 10 years.

This has plenty of folks spooked over the financial sustainability of the U.S. – a concern that was seen in long-term Treasury yields, which initially spiked on news of the bill's passage.

Cooler heads prevailed as the session wore on, though, with yields on the 10-year and 30-year Treasury notes ending the day down.

As for the main indexes, the Dow Jones Industrial Average closed marginally lower at 41,859, and the S&P 500 shed 2.6 points to 5,842. The Nasdaq Composite hung on for a 0.3% gain to end at 18,925.

Snowflake soars on beat-and-raise quarter

In single-stock news, Snowflake (SNOW) jumped 13.4% after the cloud-based data platform reported higher-than-expected fiscal first-quarter earnings.

SNOW also raised its fiscal second-quarter revenue of $1.035 billion to $1.04 billion on strong enterprise demand for AI products.

"Snowflake delivered strong fiscal Q1 results on broad-based demand and steady consumption trends," says Oppenheimer analyst Ittai Kidron.

"In addition, better-than-expected Snowpark and Dynamic Tables activity and strong AI adoption suggest that newer products are resonating with customers," the analyst adds.

Kidron has an Outperform (Buy) rating on the tech stock and says it's a "top pick."

He notes that if "macro conditions hold, we see room for upside, especially considering the still-nascent AI opportunity, continued product expansion, and the maturing sales and go-to-market motion."

Nike and Amazon rejoin forces

Nike (NKE) rose 2.2% after The Information reported that the athletic apparel and footwear maker said it will resume selling its products on Amazon.com (AMZN, +1.0%).

NKE previously sold its merchandise on Amazon from 2017 to 2019, but ended the partnership as it aimed to boost direct-to-consumer sales.

"Restoring wholesale relationships should be a top priority," wrote Truist Securities analyst Joseph Civello back in October when he upgraded the blue chip stock to Buy. "We think establishing an Amazon partnership can be a game-changer."

On Wednesday, Civello noted that brands such as Adidas (ADDYY) and Deckers Outdoor's (DECK) UGG benefit from selling their products on Amazon "because it enables them to curate a premium shopping experience on a platform that has roughly 48% market share of U.S. e-commerce."

Economic data

It was a busy morning for economic data, and the reports released today continue to show a resilient economy.

Initial jobless claims, for one, fell by 2,000 last week to 227,000. And S&P Global's Flash Manufacturing and Services Purchasing Managers Indexes (PMIs) edged further into expansion territory this month.

However, data from the National Association of Realtors showed that existing home sales fell 0.5% month over month, representing the slowest sales pace for any April going back to 2009.

The average home price, meanwhile, hit a record high of $414,000.

"This downward streak is emblematic of the affordability issues plaguing the housing market," says Charlie Dougherty, senior economist at Wells Fargo.

"Although mortgage rates dipped slightly in the months preceding April sales, they remained elevated above 6.5%, presenting a challenge for homebuyers," he adds.

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With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.