The S&P 500 is trading around unchanged, recovering after futures and treasuries sold off before the open. Earlier this morning the House of Representatives, like the Yankees last night, hit a walk-off home run and passed the broad One Big Beautiful Bill Act. Unlike the Knicks (sad face emoji), House Republicans closed out their game and are passing the legislation off to the Senate. Yields briefly spiked but reversed all of that move and then some, trading below yesterday’s levels. That bid in Treasuries has helped equities get around positive territory. Like yesterday though, breadth is not impressive with most sectors flat or negative and the equal-weight is down 0.4%. Comm Services is leading and Consumer Discretionary is also outperforming with mega caps responsible for most of the move. The Utilities, Energy and Healthcare sectors are underperforming. Solar names are getting hit on the accelerated phase out of tax credits in the House legislation. Managed care names are also under pressure after CMS announced more aggressive audits of Medicare Advantage. Quick reminder that the preliminary additions and deletions to the Russell indexes will be announced after the close tomorrow.

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