Stock Market News Review: SPY Inches Lower as Trump’s Focus Turns to Megabill from Trade Deals

The S&P 500 (SPX) tumbled back and forth between positive and negative territory during the Thursday trading session before closing the day slightly in the red.

Before the market open, the House voted to pass President Trump’s “one, big, beautiful bill,” which, among other measures, seeks to extend Trump’s 2017 cuts. It also includes a provision to provide newborns with a $1,000 investment account funded by the government and raising the state and local tax (SALT) deduction to $40,000 from $10,000 with a limit for high-earners.

Next, the S&P Global Flash U.S. composite purchasing managers’ index (PMI) increased to 52.1, a 1.5 boost from April’s reading of 50.6. A number above 50 signals business growth while a number below 50 implies contraction. At the same time, S&P Global Market Intelligence chief business economist Chris Williamson warned that some of the growth is attributed to companies front-running business activity before the U.S.-China tariff reduction pause expires.

On the same topic, Trump still hasn’t spoken with China President Xi since the two nations agreed to temporarily reduce tariffs earlier this month, according to CNN’s Alayna Treene. That comes after China urged the U.S. to “correct its wrongdoings” in response to the Washington’s restrictions on Huawei’s Ascend chips.

Finally, White House Press Secretary Karoline Leavitt announced that Trump will attend the Group of Seven (G7) leaders’ conference in Canada next month. It’s more than likely that Trump will have trade conversations with Canada, as well as other countries in attendance, as the U.S. 90-day pause on reciprocal tariffs ends in early July.

The S&P 500 fell by 0.04% on Thursday while the Nasdaq 100 managed to close with a 0.15% gain.