Prior to last-minute changes, the bill was expected to increase budget deficits by about $2.7 trillion over a decade. Investors had expected to see “much more in terms of fiscal restraint,” said Federal Reserve policymaker Christopher Waller.

Anxieties about the size of the forecast deficits, combined with Moody’s Ratings stripping the U.S. of its last major triple-A credit rating, have pushed yields higher in recent days.

The Nasdaq Composite advanced, and the Dow industrials and S&P 500 edged higher. On Wednesday the Dow fell 1.9% after a disappointing Treasury auction accelerated the bond selloff.

Health insurers declined after the Centers for Medicare and Medicaid Services said it would expand its auditing of Medicare Advantage.

Bitcoin traded above $111,000, extending a rally that gained extra momentum this week after the Senate voted to advance a bill aimed at regulating stablecoins. Trump will attend a gala dinner Thursday with the biggest holders of his $TRUMP meme coin.

Asian and European stocks retreated, echoing Wednesday’s falls in the U.S. Eurozone business activity declined in May, despite Trump rolling back some tariff hikes, new data showed.

—By Katy Barnato and Karen Langley