U.S. stocks ended Thursday on a mixed note as investors weighed the long-term fiscal implications of a sweeping House bill against rising Treasury yields. Meanwhile, Bitcoin surged past $111,000, reflecting growing concern over U.S. debt and inflationary pressures.

The Dow Jones Industrial Average slipped 1.35 points to close at 41,859.1, while the S&P 500 edged down 2.60 points, or 0.04%, to 5,842.01. The Nasdaq Composite outperformed, gaining 53.09 points, or 0.28%, to end the session at 18,925.7.

Market attention centered on the House’s narrow 215–214 passage of President Trump’s $3.7 trillion “One Big Beautiful Bill” reconciliation package. The legislation would make permanent several 2017-era tax cuts, tighten Medicaid eligibility, and phase out clean energy tax credits. The bill now heads to the Senate, where revisions are expected ahead of a looming debt ceiling deadline.

Bond markets reacted swiftly, with long-dated Treasury yields rising on fears the bill will further expand the federal deficit. Analysts warned the legislation could “trigger a broader fiscal reckoning” due to its combination of tax relief and spending increases.

Amid the fiscal uncertainty, Bitcoin climbed to $111,000, continuing its sharp ascent. The move reflects investor anxiety over Washington’s fiscal trajectory and the search for alternatives to traditional stores of value. The cryptocurrency, often viewed as a hedge against fiat depreciation, responded to the projected $3.7 trillion deficit impact tied to the bill.

Morgan Stanley, in a bullish note earlier Thursday, reaffirmed its preference for U.S. assets but warned that rising yields could cap near-term equity valuations. The bank projects the S&P 500 could trade in the 5,500–6,100 range through midyear before resuming its climb in 2026.

As the Senate prepares for debate, market participants will be watching closely. With Bitcoin’s rise signaling deeper fiscal skepticism, both Wall Street and Washington may soon face the consequences of high-stakes policy making.