US stock indices dipped mildly on Thursday as investors followed the movements of US treasury yields closely, ahead of a decisive vote by Congress on Trumps tax reform bill.

In a partisan vote on Thursday, the House of Representatives voted in favor of Trumps bill to cut taxes and increase military spending.

The bill, which has now moved to the Senate, is expected to increase government debt by trillions of dollars and spike the deficit, in a time of increasing concerns about tariff-related inflation.

The budget office at Congress estimates the cost of the tax bill at $4 trillion.

US 30-year treasury yields are up to 5.1%, the highest since 2023.

US 10-year note yields traded at just below 4.6%, with higher long-term yields usually pressuring the economy and impacting interest rates across economic sectors.

Earlier US data showed unemployment claims fell last week to 227 thousand, below estimates of 230 thousand.

On trading, Dow Jones fell 0.3% as of 15:59 GMT, or 111 points to 41,805 points, as SP 500 shed 0.1% to 5841 points, while NASDAQ added 0.4%, or 85 points to 18,962 points.