Stock markets fall as Trump tax cuts clear House

Stock markets mostly fell and US long-term borrowing costs surged Thursday as investors fretted over the US debt pile after President Donald Trump's sweeping spending and tax cut plan passed the House of Representatives.

Wall Street's three main indexes were mixed at the open, with the broad-based S&P 500 and Dow falling while the tech-heavy Nasdaq rose.

The yield on 30-year US government bonds climbed to 5.15 per cent following the House vote, nearing levels last seen in 2007 at the start of the global financial crisis.

"The increase in longer-term borrowing costs reflects renewed investor concerns over the ever-expanding size of the US budget deficit and overall national debt," said David Morrison, senior market analyst at financial services firm Trade Nation.

A weak auction of 20-year US government debt on Wednesday had already flashed a warning sign that the bond market was worried about the country's finances.

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Last week, Moody's lowered its top-tier credit rating for the world's biggest economy, citing the growing US debt mountain.

The dollar remained under pressure while bitcoin reached a new record, nearing $112,000, and oil prices fell.

"The growing mountain of US debt is causing ripples of worry across financial markets," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

"As the dollar has weakened, amid concerns about the US fiscal position, bitcoin has flexed even more muscle, as investors appear to be looking for alternatives to the greenback."

European stock markets were in the red in afternoon deals, as investors also reacted to weak business activity data out of the eurozone and Britain.

Traders in Asia were also worried about rising Japanese bond yields, analysts said.

Trump's "One Big, Beautiful Bill Act" passed by one vote, 215-214, and along party lines after Republican leadership quelled a rebellion among fiscal conservatives.

Independent analysts warn the bill would increase the deficit by as much as $4 trillion over a decade.

The White House Council of Economic Advisors says the package will spur growth of up to 5.2 per cent while Trump's spokeswoman insisted it would not add to the deficit.