US STOCKS-Wall Street stocks rise in choppy trading as Treasury yields ease

By Chibuike Oguh

NEW YORK, May 22 (Reuters) - U.S. stocks rose on Thursday, erasing initial declines, as Treasury yields eased off recent highs after the House of Representatives passed U.S. President Donald Trump's tax and spending bill.

Recent concerns about the U.S. deficit have pushed up Treasury yields and pressured stocks, but longer-dated yields fell on Thursday, allowing stocks to take a breather.

The benchmark U.S. 10-year note yield US10YT=RR fell 5 basis points to 4.547%, after hitting its highest since February.

All three main stock indexes rose in choppy trading. They had posted their biggest single-day percentage drops in a month on Wednesday as Treasury yields spiked on U.S. debt worries.

The Republican-controlled House voted by a slim margin to pass the bill, which would fulfill many of Trump's campaign pledges to his political base, but will increase the $36.2 trillion U.S. debt pile by $3.8 trillion over the next decade, according to the nonpartisan Congressional Budget Office.

Investors are also weighing the impact of Trump's tariffs on U.S. imports, including on consumer prices.

"The problem today was the tax bill, which appears to have passed," said George Young, partner and portfolio manager at Villere & Co in New Orleans. "But we are thinking about bigger potential problems and the two main things on the table are tariffs and interest rates."

As of 3:22 p.m. ET, the Dow Jones Industrial Average .DJI rose 179.64 points, or 0.43%, to 42,040.08, the S&P 500 .SPX gained 27.83 points, or 0.48%, at 5,872.44 and the Nasdaq Composite .IXIC advanced 165.88 points, or 0.88%, to 19,038.52.

"The market hates uncertainty and we've still got this overhang of the tariffs and the bond market, which is totally apolitical and totally international," Young added.

Six of the S&P 500's 11 subsectors gained, including consumer discretionary, communication services and technology stocks. Utilities and healthcare stocks were the biggest losers.

Megacap growth stocks, including Nvidia NVDA.O, Amazon AMZN.O and Tesla TSLA, rose. Alphabet GOOGL.O was up 2.4%, after touching a nearly three-month high.

Snowflake SNOW.N jumped more than 12% after the cloud computing firm raised its fiscal 2026 product revenue forecast.

Analog Devices ADI.O fell 4% despite the semiconductor manufacturer beating Wall Street estimates for quarterly results.

Shares of solar energy companies including First Solar FSLR.O fell more than 5% as Trump's tax bill is expected to end a number of green-energy subsidies.

Advancing issues outnumbered decliners by a 1.13-to-1 ratio on the NYSE. There were 61 new highs and 93 new lows on the NYSE.

The S&P 500 posted 3 new 52-week highs and nine new lows while the Nasdaq Composite recorded 46 new highs and 102 new lows.